Real Estate Tax Credits & Foreclosure Relief
See The Information On the 2010 Tax Credit below original article
Sandy Keller, Myrtle Beach real estate expert author of Ezine Articles
The 2009 Stimulus Package changed or had some new provisions.
This Article was written in 2008 to provide Some Need To Know Provisions in the Housing and Economic Recovery Act of 2008:
1st Time Home Buyers - The Law provides a $7,500 tax credit to qualified first time home buyers. The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009. Single taxpayers with income up to $75,000 and married couples with income up to $150,000 per year qualify for the full tax credit. The tax credit is actually an interest-free loan that must be repaid over a 15-year period.
Homeowner Property Tax Relief - For tax year 2008 there will be temporary tax relief for home owners who do not itemize their deductions but pay property taxes. They will receive a $500 additional standard deduction ($1,000 for married couples). This will really benefit those who have paid off their mortgage because they normally do not itemize deductions.
FHA (Federal Housing Administration) – Maximum FHA-insured loans will increase to 115% of an area’s median home price, up to a maximum of $625,500, with a minimum down payment of 3.5%.
Mortgage Revenue Bonds – States will receive new authority to issue an additional $11 billion in bonds to be used to refinance those subprime loans, mortgages for first-time home buyers and multi-family rental housing. This will help struggling homeowners refinance their mortgage.
Independent Regulator – With enhanced authority to watch over Fannie Mae, Freddie Mac and the Federal Home Loan Banks and take corrective actions if they are undercapitalized. Fannie Mae and Freddie Mac’s maximum loan amount will increase to $625,500. Temporarily, through the end of 2009 the Treasury will expand the government’s line of credit to Fannie Mae and Freddie Mac.
Foreclosure Relief - FHA to guarantee up to $300 billion in refinance mortgages where current mortgage holders agree to accept partial payment so the outstanding principal on the new loan is more affordable for borrowers.
Also read about new requirements passed November 30, 2009 that may provide an alternative to foreclosure ....Home Foreclosure Alternatives
2010 Update On Home Buyer Tax Credits:
Legislation enabled First Time Home Owners to receive a tax credit of $8,000 for purchases through April 30, 2010 that close by June 30, 2010 (The closing date for purchases made by April 30, 2020 was extened). For qualifying purchases in 2010 taxpayers have the option of claiming the credit on either their 2009 or 2010 tax return.
Every homeowner could have purchased a new principle residence and received a tax credit if they qualified. Married filing a joint return could have received $6,500. That credit's time period has also ended.