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So what’s up with the $15,000 tax credit?

Something is Better than Nothing

While the lavish stimulus bill was passed on Friday evening. The $15,000 tax credit was a little too bold for the bail out, here’s what you can look forward to as a buyer:

  1. Loan limits will be raised to $727,000 in high cost areas.
  2. Tax credit will be raised to $8,000 with NO payback – (no loan repayment) effective January 1st  2009. There are income limits so need to check on that. (Designed for first time home buyer)
  3. Interest rates have come down 125-150 basis points.
  4. The bill has over $50 billion in it for foreclosure mitigation, and the second half of TARP will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES’s – so in return will help increase new mortgages.
  5. Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.

The foreclosure part remains to be seen in my opinion. The tax credit is a true credit and that’s a huge victory from the $7500 repayment in 15 years. So buyers get a $8000 credit and sellers get an automatic price reduction that doesn’t hurt!  Is that the bail out you’ve been waiting for?  To get all the juicy details be sure and read more about: The American Recovery and Reinvestment Act of 2009 from NAR. (National Association of Realtors)

About Terry Smith

Passionate about real estate, positive problem solver, specialty boutique real estate brokerage that does things your way! A full-time Broker & REALTOR®, helping people buy and sell homes in the Dallas - Plano area. Whether you're a buyer just starting out or someone with luxury properties to sell. I have extensive knowledge and experience to help you with your real estate transaction. I am a native Dallasite. Have questions? Ask me. You can find me on Google+ and Pinterest.

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