Earlier this week, President Obama signed H.R. 1, The American Recovery and Reinvestment Act of 2009, to the tune of $787,000,000,000. This is roughly the same as giving every American man, woman and child $2,500. President Obama announced that we can see how the funds are being spent by visiting www.recovery.gov.
Here are a few items designed to help the housing markets:
Loan Limits to be Reversed 2008. At the end of 2008, the conforming jumbo limits were replaced with conforming high balance. In the Seattle area, this meant that the fine line between a jumbo and conforming mortgage went from $567,500 to $506,000 for a single family dwelling. Watch for Fannie, Freddie and FHA to implement the higher loan limits soon through December 31, 2009.
2009 Tax Credit for First Time Homebuyers. A tax credit up to $8000 is available to first time home buyers (someone who has not owned a home in the past 36 months) who close on a home between January 1, 2009 – November 30, 2009. Unlike the 2008 plan, this tax credit does not have to be paid back.
NOTE: If you are a qualified first time home buyer who bought a home from April 9, 2008 – December 31, 2008; you're still under the original plan with the $7,500 credit which requires you to pay it back (interest free loan).
More to follow….much more.