Well after a week of gossip and speculation, the The American Recovery and Reinvestment Act of 2009, is expected to be signed into law today. So what does it mean for real estate and buyers and sellers out in the market? Here’s the deal:
The rumored $15,000 credit is out, but a smaller $8000 credit is in. The old $7500 “credit/loan” is being replaced with this $8000 (or 10% of the purchase price, which ever is less). The credit is ONLY good for first time buyers or people who haven’t owned a home in the past 3 years. There are still income limits- so an individual receives the full amount if they gross less than $75,000 with phase out above that cap.
The great news is that this credit DOES NOT have to be repaid as the $7500 credit did. This new credit applies to anyone purchasing a home after January 1,2009 and before December 31, 2009. You must live in the home for 3 years or the full amount will need to be repaid. For a look at the differencs between the old credit and the new credit click here.
Overall I think this is a great incentive for first time buyers. I would love to have seen something for all purchasers but first time buyers really are a driving force right now and I think this is one more great incentive (along with low rates and plenty of choices). If you are a first time buyer, now is the time- get out there and start looking!