Looks like th
e long awaited New Tax Credit Bill will be signed into law tomorrow. The New Tax Credit Bill was passed by the Senate earlier today, and by the House a few minutes ago. The President has already stated that he will sign the Bill tomorrow once it hits his desk.
The New Tax Credit Bill will look a little different than the current one, but until it is passed by both the Senate and the House, and signed by the President, it is always subject to change. As it stands right now the New Tax Credit Bill is suppose to contain the following:
- First-time homebuyers will continue at $8,000
- Tax credit for “move up” purchasers will be up to $6,500
- Must have used previous home as a principal residence for 5 of the 8 previous years.
- Income limits increased and are the same for first-time and “move up” purchasers: $125,000 for single filers/$225,000 for joint filers
- Limitation on eligible home prices has been increased to $800,000
- Time Frame: December 1, 2009 to April 30, 2010 plus 60 day extension if binding contract is in place by April 30, 2010.
- Anti-fraud measures have been added
The two big differences between the present Tax Credit and the New Tax Credit Bill in my opinion are:
- The New Tax Credit will be expanded to include present homeowners that have owned their home for at least 5 years. The New Tax Credit still only applies to Primary Properties, which means that Investment Properties or Vacation Homes do not qualify for the New Tax Credit.
- Instead of the cut-off date being the Closing Date, it will now be the Date that the Buyer goes under Contract, and then having to Close 60 Days from that date. This makes a lot more sense to me then having the Closing Date be the cut-off.
The $6,500 Tax Credit for existing Homeowners will be effective upon the New Tax Credit Bill being signed by the President.
Let's see if what we are being told is actually with ends up being signed, and we should know that some time tomorrow.
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George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
This sounds like another good opportunity to inspire those that have been in their homes for a while to get off the fence. Lets hope it works. Thanks for the upday.
George
This is really good news; anything that kick starts the market a little more is a plus.
Chris, it will be interesting to see if this motivates existing homeowners like the First Time Homebuyer Tax Credit motivated First Time Homebuyers.
Tom, like I stated above to Chiris it will be interesting to see what will happen.
George - I've gotten so many emails and calls this week about whether or not this bill has passed and just heard on the news what you've reported in your post.
FIRST again you are George to bring the GOOD news... I am waiting to utilize this MYSELF! Thanks George, it's definitely motivational!
Donna my office has been keeping the Outside Loan Office up to date on this all day, so once the House also passed it, I figured it was then safe to post about this.
Diane, the intent of the Bill is to motivate, let's see if accomplishes that among existing Homeowners.
George, I think it is great but it is becoming more difficult to get a loan.
I have a client that didn't have credit last summer because he bought his car for cash, he has a great job, stable, and after taking out credit last summer his credit shot up to 785, he has cash too to close. We are to close on the 12th and today the underwriter here said they won't approve the loan because only one credit bureau is reporting credit. My lender is brokering it out.
It is so frustrating. We shall see. Thanks for the update. I have had a busy last couple days. I hope you are well!!! Have a great evening friend! :)
George,
This should be good for the buyers who could not find homes... Because now some sellers might decide to sell!
Ann Hayden in Wildwood, MO
George,
Does this mean I don't have to eat row, after all?
Bill
George.. This is great news.. but I always wonder? If the government is giving us this, what are they planning on taking away?
Let's just keep our fingers crossed that they don't for a change.
George,
Even though this will cost money it still is the right thing to do. The housing market needs help on the demand side.
Sounds good George, oh BTW, we did not hear you yelling up here in Canada??? Thought for sure after the Yankees win, we would have! ;)
Debbie, I hope your Loan Officer is able to find you someone to place it with, around here I do not know of anyone that will do a loan on a Borrower with less than two credit scores.
Ann, that could very well happen especially with the winter months up us.
Bill my friend you are a survivor. No matter what you would find a way, tax credit or not.
Valerie, they have plenty of paper so they will just print more money :) :)
Esko, it has brought a number of buyers into the market that last couple of months. I just hope that the long term cost is not more than the short term benefit.
Al and Peggy, I don't know how you were not able to hear me, because I was yelling pretty loud :)
There is a good comparison that NAR put together on the tax credits. I am not sure it is accessible to the public. I'm sure there will be a few more clarifications before all is said and done.
George it could be a rather busy winter season. I think many would like to benefit from the credit but getting a mortgage is an issue for some.
I know you would be one of the first person to post about this. Thank you.
Congratulations on that Yankee win George. Guess the series ended just in time because with the incentive extension, guess you will be busy!
Joan, you are right. Once the Bill is signed a lot more detail will be available.
Jennifer, getting a mortgage is only an issue for those who have credit and income issues. For those that do not have those issues, we still have plenty of money to lend.
Al and Peggy I hope you are right about a busy Winter, it would be nice to keep things busy.
I was hoping you would write a simple concise summation of the new tax credit, and you did:) I am curious though, I read somewhere that the second $6,500 was "up" to $6,500. Do you know what that means?
Karen I have not seen all the details yet, but if it is like the $8,000 for First Time Homebuyers, then that would mean that it would work as a percentage of the sales price ($8,000 or 10% of the sales price, which ever is less) or a decreased amount if they go over the income limits. But I will no more when I have time to read over the whole Bill more carefully. For now I have only seen summaries.