Housing and Economic Recovery Act

What does it mean to homeowners? Here are the basics of the tax credit being offered:
  • a $7500 maximum (you can claim up to 10% of the purchase price) tax credit to either first time homebuyers OR if you haven't owned a home in the past three years
  • if your AGI (adjusted gross income) exceeds $75,000 for an individual or $150,000 as a couple, the amount you're eligible for begins to decrease
  • you must close by 6/30/09 on the home
  • the amount credited must be paid back over a period of 15 years
  • if you sell the home before the 15 year period (and you have no gain on the sale) you won't be expected to pay the credit back
  • http://www.federalhousingtaxcredit.com/ for more information

The bill also contains a provision to help homeowners with subprime loans refinance into a 30 year fixed FHA mortgage.

Below are a few articles I've come across that may help make sense of it all!






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