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GREAT News for 1st time homebuyers! Have you been waiting for that "message in a bottle" to buy? The First Time Homebuyer Tax Incentive has now been approved through the lobbying efforts of the National Association of Realtors.  A first time homebuyer is defined for the purposes of the tax incentive is anyone who has not owned any property in the past 3 years. For more details, please see the links below.

It is a great time to buy, especially now!

Here's your "message in a bottle":

First time homebuyer tax credit info:

http://www.realtor.org/GAPublic.nsf/files/chart_homebuyer_tax_credit_.pdf/$FILE/chart_homebuyer_tax_credit_.pdf

http://www.federalhousingtaxcredit.com/

"Illinois REALTORS applaud passage of housing stimulus package. REALTOR-supported H.R. 3221, the "Housing and Economic Recovery Act of 2008,"  includes:

• $7,500 first-time homebuyer tax credit. The credit that would be available for any qualified purchase between April 8, 2008 and June 30, 2009, repayable over 15 years. This provision will be effective immediately and is intended to convert those "just looking" into buyers.
• GSE reform. Independent regulator for Fannie Mae and Freddie Mac and permanent conforming loan limits up to the greater of $417,000 or 115 percent of the local area median home price, capped at $625,500.
• FHA reform. Permanent FHA loan limits at the greater of $271,050 or 115 percent of local area median home price, capped at $625,500.
• FHA foreclosure rescue.A refinance program for homebuyers with problematic subprime loans."
• (Source: Illinois Association of Realtors)

Here are the links to the details of this bill:

Here is a link to the summary of the key provisions in HB 3221 as posted on realtor.org.

http://www.realtor.org/gapublic.nsf/pages/hr_3221_key_provisions?OpenDocument

"National Association of REALTORS®
Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)

• GSE Reform - including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  View 2009 FHA and GSE loan limit estimates(PDF)

• FHA Reform- including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  View 2009 FHA and GSE loan limit estimates(PDF)
  FHA Reform Chart(PDF)

• Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
  First-time homebuyer tax credit chart
  Frequently asked questions about the first-time homebuyer tax credit

• FHA foreclosure rescue- development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
  FHA Foreclosure Rescue Chart

• Seller-funded downpayment assistance programs- codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
  More about the seller-funded downpayment assistance provision
  Tips to finding downpayment assistance programs(PDF)

• VA loan limits - temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

• Risk-based pricing - puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

• GSE Stabilization- includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

• Mortgage Revenue Bond Authority- authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

• National Affordable Housing Trust Fund- Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

• CDBG Funding - Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
  More about the CDBG funding provision

• LIHTC - Modernizes the Low Income Housing Tax Credit program to make it more efficient.

• Loan Originator Requirements - Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator." (Source: National Association of Realtors)

Statement by NAR President re: President signing of the legislation.

http://www.realtor.org/press_room/news_releases/2008/president_signing_housing_bill

Please make sure to  check with your tax adviser for details on how this applies to your individual situation.  This post is for information only.

You do not have to travel the path to home-ownership alone!

I love working with first time buyers, so if you do not already have a buyer's agent, please contact me.  I can help you get pre-approved with a lender and will sit down with you to go over the entire process so you are comfortable and knowledgeable as we move forward on your first real estate purchase.  I will be there to help you each step of the way.  How exciting! :-)

If I can be of assistance to you, please do not hesitate to call or email me.  It will be my pleasure!  By the way, if you know of someone that could benefit from my high level of service, please call or email me with their name and daytime phone number and I will make sure to follow up and take great care of them.  My business keeps growing from your referrals.

My Direct Number at the Office is 847.516.6760