Housing and Economic Recovery Act of 2008 Highlights

Even though it’s been a while since we’ve heard about this, there are still many people asking questions. I have a client or two who have come to me inquiring about the tax credit and how to get their $7500.

The best place to get answers is the HUD website’s FAQ page. Another great resource is the National Association of Realtors website.

Here are some highlights and thoughts on this topic.

FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500

Homebuyer Tax Credit – a $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009

Additional Property Tax Deduction – HERA provides a one-year benefit that will be available to all homeowners

Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale

There are numerous other details and you should speak with your tax adviser or an attorney before strategizing any large purchase or if you are reviewing contracts you are unfamiliar with.

Check out the links provided and read all the FAQ’s to inform yourself more thoroughly to really learn what’s going on, and I’ll keep you posted on what I hear on my end.

Comments

Got something to say?