Loading ...Housing Stimulus Package
July 28th, 2008 by Tyler | 1,198 views |
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Congress has been working over the last several months to pass a housing stimulus package that will alleviate some pain for home buyers and sellers in the DC Metro area and the rest of the US. It now appears that they are getting close to a vote on the final bill which could happen in the next day or so with the President signing it into law shortly thereafter. ***Update: President Bush signed off on the 2008 Housing Stimulus Bill on July 30, 2008! I wanted to make you all aware of a few of the major provisions of the bill that may directly affect you.
- First Time Homebuyer Tax Credit: What Congress is currently calling a tax credit of $7,500 will be available to all first time home buyers (or buyers who have not owned a home in the last 3 years) who close(d) on their new home between April 9, 2008 and July 1, 2009. The proposed credit is in essence, an interest free loan that is payable back to the government over the subsequent 15 years at $500 per year. Obviously the main beneficiaries of this provision are the first time home buyers.
- Seller Funded Down Payment Assistance Programs (ie. Zero Down, AmeriDream, “100% Financing”. Nehemiah, etc): Any down payment assistance program involving sellers or interested third parties will be terminated on October 1, 2008. This means that buyer loan approvals need to be completed on or before September 30, 2008 to be eligible for any currently existing down payment assistance programs. If you assume a 30-45 day loan approval period that means this program will only be available for sales prior to August 15th or shortly thereafter.
- FHA Cash Down Payment Requirement: The new minimum cash down payment proposed in the bill is 3.5% raised from 3.0%. This provision will take effect immediately upon enactment of the Bill. This means that any home sale subsequent to the signing of the bill will require a minimum down payment of 3.5%.
What does all this mean? It’s time to take advantage of these programs before they’re gone. If you’re in the market to purchase a home in Northern Virginia or Washington DC, there is no sign bigger than this: “THIS IS THE TIME TO BUY!”
Contact us at 1-888-998-9455 for top-notch buyer representation on your new home purchase!
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This entry was posted on Monday, July 28th, 2008 at 1:36 pm and is filed under Buyers Market, Buying a Home, FHA Loans, First Time Home Buyer, Home Mortgages, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
August 4th, 2008 at 12:04 pm
[…] I mentioned the other day, the new housing stimulus package is allowing a $7,500 tax credit for first time homebuyers. So what exactly is this you ask? […]
September 4th, 2008 at 7:43 pm
What a killer time to be a first time homebuyer! So many folks bought homes they couldn’t afford and now those homes are a “dime a dozen”. Housing stimulus added to really low home prices adds up to great opportunities for folks who can get a mortgage.
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