from the New York Times
As expected, President Obama today signed the $787 billion American Recovery and Reinvestment Act (aka “the stimulus”) into law. Here’s a recap of how the stimulus bill became a law, and what the final plan means for home buyers.
- First, the Senate and the House passed their own ideal economic recovery bills. The approved Senate bill included a $15,000 homebuyer tax credit.
- Congressional leaders met to combine the Senate and House bills into one piece of legislation. The $15,000 tax credit was reduced to a $8,000 homebuyer tax credit.
- Details of the stimulus become public once the new plan is passed by both the Senate and House, including:
- Tax credit of 10% of the purchase price up to $8,000
- Credit only valid for first-time homebuyers purchasing principal residence
- Credit can be applied to purchases made from 1/01/09-12/01/09
- Home purchased must be principal residence for 3 years or credit will be recaptured
- Only applies when taxable income for the year is less than $75,000 (file single return) or 150,000 (file join return)
So will this be enough to heal the US housing market? Add Trulia CEO Pete Flint to those who think we still need to do more to solve the housing crisis. Plus, as the OC Register real estate blog showed, the stimulus has the least impact on price in states needing the most housing help.
Even the president said at the signing that this won’t solve everything. In fact, he’ll be back on the national stage tomorrow unveiling a more detailed plan for TARP money to help with the foreclosure crisis. In the meantime, this definitely gives us hope.
Popularity: 11% [?]
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February 20th, 2009 at 12:03 am
If my wife is not first time homeowner, but I am, can we take the credit if I buy our new primary residence alone after she sells her home?
February 20th, 2009 at 11:50 am
No. You cannot own a home for 3 years to be a “first time homebuyer”. I really wish this bill would have went further to help all homebuyers.
Connie
February 27th, 2009 at 9:16 pm
Unfortunetly no, the new credit only applies for those new home buyers whom buy a home between January 1,2009 - December 1, 2009 they will be entitled to a 8,000.00 credit and they must stay at that resiedence for 3 years if they move or sell anytime before that they will have to pay back the 8,000.00 but for those whom took the 7,500.00 credit from the 2008 law which originally was from July 1,2008 - April 1,2009 now its December 31,2008 they will have to start to payback the loan starting 2 years after you receive the loan and then will pay back until the year 2023 and it will be deducted from you tax refund if you are recieving one that year if not it will be added to your owed amount that year.
February 27th, 2009 at 9:20 pm
They are currently working on making it available for the homeowners whom took the 7,500.00 credit to amend there tax return for 2008 and collect the remaining 500.00 to make the loan for the full 2008 but they havent confirmed that information yet. Sucks I know we bought a home 3 years ago and are stuck in a ARM and we have nowhere to turn to and all these people whom are reaping the benifits of buying low priced home and are now getting free money how is that fair to the rest of America I ask???
April 16th, 2009 at 12:56 pm
Kind of same question as Jim’s. Prior to my husband and I getting married he owned a home and still does. He is planning on selling it here soon. Since it is my first time buying a home will I still get the 8k credit?
October 25th, 2009 at 5:57 pm
I am a first time buyer , but lost my apartment building through a forecloser. I borrow the money from a high interest hardship loan through a bad lender. This happen 10 months ago . will this keep me from getting a home on the new stimulus plan involing a tax creidit for the amount of eight thousand dollars . and when should i apply ,toward the purchasing of getting a home and through what program is best for me to apply for base on my income . I make 45,000.00 a year , and have been working 38 years. If not , do the president have ways for back tacking those lender who stole my property , i will able to get it back.