How Will The American Recovery and Reinvestment Act Help Fort Mill Home Sales
As we wait for President Obama to sign the American Recovery and Reinvestment Act Tueday, what’s in the bill to benefit Fort Mill home sales?
As it stands now the latest version of the bill according to the National Association of Realtors is:
The final stimulus bill increases the first-time home buyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation. In addition, the credit availability has been extended until December 1.
The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac.
The NAR estimates that the home buyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.
REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
- Amount of Credit: Maximum credit amount increased to $8000
- Eligible Property: Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
- Refundable: Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.Purchasers will continue to receive refund for unused amount when tax return is filed.
- Income Limit: Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).
- First-time Homebuyer Only: Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
- Revenue Bond Financing: Purchasers who utilize revenue bond financing can use credit.
- Repayment: No repayment for purchases on or after January 1, 2009 and before December 1, 2009
- Recapture:If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
- Termination: December 1, 2009
- Effective Date: All revisions are effective as of January 1, 2009
Comparison chart to last years home buyers tax credit:
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