Aiming at reviving the US economy, a $787 Billion Stimulus Plan made up of spending programs and tax cuts was revised 2/17/09 and signed. Down from nearly $1 Trillion, it stands as the largest anti-recession effort since World War II. So far after watching today this is what I see Home owners and potential homebuyers gaining from key provisions in this stimulus plan.
Homebuyers Tax Credit
First-time homebuyers who purchase homes from January 1st until the end of November 2009 may be eligible for an $8,000 or 10% of the value of the home tax credit, whichever is lower. That is a tax credit and not a tax deduction “ a tax credit is the same as money in your pocket, a tax deduction only reduces your taxable income. If buyers sell their homes before 3 years, they have to repay the credit. The tax credit starts phasing out for single filers with incomes 75k or more and couples with incomes above 150k.
Interest Rates – Keep them low so we can get buyers back out there to buy, and for those that are refinancing get them refinanced at lower rates for those that qualify.
Reduce loan balances – 4-5 mil – Refinance those that qualify at a lower rate and reduce the loan balance to equal current value.
Some Housing-Related Provisions
Tax Incentives designed to Spur Energy Savings & Green Jobs ” Designed to help promote energy-efficient improvements in homes by extending and expanding tax credits through 2010 for purchases such as, insulation, new furnaces, energy-efficient windows and doors.
Landmark Energy Savings ” Provides $5 Billion for energy efficient improvements for more than one million medium-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills. I believe I saw the cost per household at 2-3k?
Make Repairs to Public Housing and Make Key Energy Efficiency Retrofits To HUD-Assisted Housing”Provides a total of $6.3 Billion to increase energy efficiency in federally supported housing programs. It establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) by increasing energy efficiency, including new insulation, windows, and frames.
Expand Housing Assistance”Increases support for several critical housing programs. This provision includes $2 Billion for the Neighborhood Stabilization Program that helps communities purchase and rehabilitate foreclosed & vacant properties.
More Help for Homeowners in the Future
Let™s also keep an eye on in the coming weeks for President Obama™s plan to help struggling borrowers before they are faced with a default on their mortgage. The Obama administration is discussing plans to help borrowers that still have an income, have not yet fallen behind on their mortgage payments & who are struggling to stay afloat. President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster, but not too many details are available. This is good news for individual homeowners and for the housing industry as a whole. Assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million in 2009. This should help stabilize home prices.
The Economic Stimulus Plan is huge, and impacts many industries, including Realtors. Realtors accross the country are trying to do whatever we can to help improve our economy. Hopefully this will start turning us back in the right direction. This is not a complete list, but the information I have included is what I have collected from a few sources.
If you are looking to purchase a new home contact our team. It is a home buyers market, we can help you find the home of your dreams at a reduced price.
Posted By: Julie Anne – The Julie Anne Real Estate Team at Keller Williams Success Realty