About the $8000 First Time Home Buyer Credit

A lot of friends have inquired me in the past weeks about the details of $8000 First Time Home Buyer credit. So here are some additional info:

- This is a tax credit and not an interest free loan as the previous stimulus bill required. Another change from the previous bill is the amount- now $8,000 up from $7,500.

- There is an income qualification – single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the program.

- The purchase must be made between 1/1/2009 and 12/31/2009.

- The tax credit is for first time home buyers only (not having lived in your residence for the previous three years).

- The tax credit is equal to 10 percent of the homes purchase price up to $8,000.

- The credit is claimed on the purchasers tax returns.

The first time home buyer tax credit is one of several key housing provisions in the American Recovery and Reinvestment Act of 2009 signed by President Obama on February 17, 2009.

For more details on this plan go to here.


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Mortage Modification Info now Available

On Wednesday, February 18, 2009, President Obama announced his new Homeowner Affordability and Stability Plan to help troubled homeowners avoid foreclosure. This plan will offer assistance up to 9 million homeowners and applies only to primary residences. The first component of the plan allows homeowners who are current to refinance an existing Fannie Mae or Freddie Mac conforming loan with a loan-to-value ratio up to 105 percent.

For more info, please click here.


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