What Does It Mean In Simple Language?

Below is a brief overview of what we will see coming out of the "Obama Bill" and it has been scaled back quite a bit from the original announcement!

Both the House and Senate have passed the Stimulus bill. The President has signed it into law.

Stimulus Bill

The final provisions of the bill include:

• Tax Credit
• Restoration of 2008 Mortgage Limits
• Increase of Reverse Mortgage Limit to $625,500
• Rural Housing Service Funding

Tax Credit

The 2008 tax credit provision has been amended as follows:
• Tax credit is increased to $8,000, but scaled back from the originally announced $15,000.
• The income limits remain the same: ($75,000 for an individual; $150,000 for a couple).
• First-time homebuyers and principal residences only.
• Tax credit is available until December 1st (previously it expired on July 1st).
• Waiver of recapture (i.e. no repayment requirement) for properties purchased in 2009 prior to December 1st.
• The provision is retroactive to purchases made on or after January 1, 2009.
• Recapture section does apply to properties sold in first three years.
• Waiver of prohibition on financing by mortgage revenue bonds is included

In addition, the President is scheduled to announce the Administration's comprehensive housing recovery program and we will see how that plays out.

Please let me know if you have any questions or if there is anything at all that I can do to assist you.