The Economic Stimulus Bill, which has consumed much of our attention for the past few weeks, received Congress's stamp of approval and is now ready for President Obama's signature.
In terms of real estate, the new law will be a boon to most first-time buyers who purchase this year, as most will qualify for an $8,000 tax credit on their 2009 tax returns.
The old law, which was to expire in July, provided a $7,500 tax credit on homes purchased since last April. However, that law required the entire $7,500 to be repaid, in $500/year annual installments, which essentially made it not a tax credit but simply an interest-free loan.
Under the new law, the now-$8,000 tax credit won't have to be repaid, making it a true credit for the first time.
The new credit will apply to all qualified home purchases in 2009. There are income limitations (haven't yet found out whether it's changed from what it was under the old law, which was a maximum AGI of $150,000 for joint filers and $75,000 for individuals.)
If your thinking about getting off the fence this year, this has got to help nudge you! There are great buys in condos, townhouses and single family homes in the Santa Cruz County area right now. Loans are at amazing rates and thanks to FHA financing you can buy a home with as little as 3 1/2% down. Your credit score can even be in the lower 600's for this, too. But, you must have good credit, low debt ratios, and a secure job.
I am here to help you with the entire process of buying a home. It's not scary, really. It's something most of us dream of and until recently was really hard to do with such crazy prices for our real estate today, we have seen a correction of about 15% in many parts of the Santa Cruz area. Some areas in Santa Cruz County have gone down as much as 50%. What's stopping you? This is free money, folks.
Call me at 831-477-5815 and I will walk you through the whole process. I have wonderful lenders to pre-approve you for a loan. Call