My New Blog

Some commentary on th enew housing bill from one of the loan guys I that many of my clients have used in the past....

"Recently many a client discussion has revolved around their questions concerning the recently passed ‘housing bill.” Their major interest is how it will benefit both new and established homeowners as it creates change in our industry. Here are some answers :

HR 3221 Housing and Economic Recovery Act of 2008

Tax incentives:

• First time home buyer tax credit of 10% of the purchase price of the home not to exceed $7,500
• In the case of two or more individuals who are not married, $7,500 is the total credit for all individuals combined
• “Refundable” credit means that if the actual tax liability was, say, $3,000, the purchaser would have the entire $3,000 tax liability wiped out plus they would receive a tax credit refund of $1,500.
• Phase out if modified adjusted gross income exceeds $75,000 ($150,000 if married, filing jointly)
• Completely goes away if income reaches $95,000 ($170,000 if married, filing jointly)
• First Time Home Buyer defined as not owning a home within 3 years
• Cannot purchase home from a related person
• Recapture of credit over 15 years (accelerated recapture if the home is sold or ceases to be primary residence)
• Applies to purchases made between April 9, 2008 and July 1, 2009
• Standard deduction for non itemizers increased by up to $500 ($1,000 if married, filing jointly) for property taxes

Fannie and Freddie:

• New regulator for Fannie and Freddie with much broader powers – Federal Housing Finance Agency (FHFA):
• Unlimited government line of credit for 18 months
• Continued problems with jumbo and Alt A loans

Conventional Loan limits:

• $417k starting Jan 1 2009.
• High cost areas: 115% of median home value (150% of GSE limit of $417k) with a maximum limit of $625,500.

http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf

http://www.realtor.org/GAPublic.nsf/files/chart_homebuyer_tax_credit_.pdf/$FILE/chart_homebuyer_tax_credit_.pdf

http://www.federalhousingtaxcredit.com/

Your Mortgage Resource for Life,

Ron Goodlin

310-303-3443

Ron@GoodlinGroup.com