$8000 Tax Credit Info

Good News for First-time Homebuyers!

The Tax Credit for first-time homebuyers has been set at $8,000, or 10% of the value of the home, from the start of 2009 through the end of November! This credit starts phasing out for couples with incomes above $150,000 or $75,000 individually. Buyers will NOT have to repay the credit if they sell their homes after 3 years. More details are still to come, and we will be sharing with you the impact of the stimulus plan once we go through the final version that is signed into law.

The current $789 Billion Stimulus Bill is expected to be passed today by Congress and on President Obama's desk to sign into law this weekend. Stocks remain under pressure as many investors feel the plan will take some time before it has an impact on the economy.

Rates came down a bit this week in anticipation of passage of the Stimulus Bill and Bank Bailout package. We feel rates will continue to float between 4.875 and 5.500% for a 30-year Fixed, depending on lender volumes. Economic conditions are ripe for lower rates, but rates have been highly volatile recently as lenders are overwhelmed with volume and raise rates to stem the flow. We continue to see changes in Mortgage Insurance guidelines, and the new Home Value Code of Conduct requiring lenders to go through a third-party Appraisal Management Company is set to go in effect soon. We will continue to keep you updated of changes that will affect your clients and their purchase decisions as we get more information.

For now, we see the greatest opportunity for new buyers in this market. Historically low rates that will most likely be available through this year, lower home prices, and the $8,000 first-time homebuyer tax credit, make it the "perfect storm" for anyone looking to purchase in this market.

Please let me know if I can be of any help to your clients during these exciting times!

Source: Jennie Woodall/Stonebrook Mortgage 2/13/09

Contact: Jennie Woodall/Stonebrook Mortgage (jwoodall@stonebrookmortgage.com)