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!

http://news.yahoo.com/s/ap/20080730/ap_on_bi_ge/mortgage_relief_q_a

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

http://bankrate.com/brm/news/mortgages/housing-bill-20080725a1.asp

http://rismedia.com/wp/2008-07-29/senate-approved-housing-rescue-package-real-estate-industry-reacts/

http://www.lendingtree.com/smartborrower/Mortgage-News/Housing-bill-to-aid-homeowners.aspx