Stimulus Package: How REALTORS are Helping

Stimulus Package
How REALTORS are helping

When the current administration’s first stimulus proposal appeared, it looked much different than it does today. The National Association of REALTORS lobbied for several improvements that are vital to providing the best results for homeowners. NAR asked for loan limit increases to be raised in high cost areas beyond 2008. Loan limits for these areas have now been set at $729,750 for FHA, Fannie Mae, and Freddie Mac products through 2009.
The Association also asked for the original $7,500 tax credit for first time homebuyers to be higher and to be a true credit with no repayment requirement. The credit is now $8,000 with no payback unless the home is sold within 3 years of the date of purchase. This credit applies only to homes purchased during 2009. If any credit amount remains unused, the unused portion will be refunded as a check to the purchaser. This credit is available to those with a gross adjusted income of no more than $75,000 for singles or $150,000 if filing jointly. The credit applies to any single-family residence, including co-ops, condominiums and townhomes that will be used as a principal residence.
If you are a potential homebuyer anxious about your job security, there is more exciting news from The California Association of REALTORS Housing Affordability Fund Mortgage Protection Program; first time homebuyers who lose their jobs may be eligible to receive up to $1,500 per month for up to 6 months to assist in making their mortgage payments. A qualified co-buyer also can participate in the program for a reduced monthly benefit of $750 a month for up to 6 months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. CAR’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program in 2009. To qualify for this program applicant must:
Be a first time homebuyer (someone who has not owned a home for the last 3 years)
Open escrow from April 2, 2009 and close on or before December 31, 2009
Use a California REALTOR in the transaction
Purchase the property in California
Be a W-2 employee (no self employed or military)