See below! Big news! There will now be a tax cut for first time home buyers of up to $7500. This is huge for our area!
Look at it this way:
Loan Amount: $125,000
Term: 30 years
Interest paid in the first year: Approximately $8100.00
Essentially, with the tax cut, the buyer could have an interest free loan for the first year. In addition, they are able to deduct mortgage interest, not with RENT! Sounds like a no-brainer to meJ As always, you should refer the buyer to their tax advisor for details.
Once again, our community is reaping the benefits of the crunch felt around the country. We are so fortunate to have the military to not only sustain our economy, but to allow it to flourish. Thank them by making them aware of this invaluable information. With a VA Home Loan, the veteran can actually come to closing with zero out of pocket, pay a lower rate than much of the population, and now get an additional tax break!!!
Get out there and sellJ J J
As always, thank you so much for your support. I will provide more details on the new legislation as I receive it.
Bush Signs Rescue Plan for Homeowners, Fannie Mae, Freddie Mac 2008-07-30 11:20:33.810 (New York)
By Roger Runningen
July 30 (Bloomberg) — President George W. Bush signed into law legislation that helps 400,000 homeowners facing foreclosure and extends a lifeline to Fannie Mae and Freddie Mac.
Bush signed the measure at the White House about 7 a.m.
today, spokesman Tony Fratto said.
“We look forward to putting in place new authorities to improve confidence and stability in markets, and to provide better oversight for Fannie Mae and Freddie Mac,” Fratto said.
The law is aimed at stemming foreclosures and halting a free-fall in housing prices by providing federal insurance for refinanced 30-year mortgages for homeowners struggling to make their monthly payments.
The measure also is designed to restore confidence in Fannie Mae and Freddie Mac by tightening regulations and authorizing the Treasury secretary to inject capital into the two biggest U.S.
providers of mortgage money.
The measure passed the Senate July 26 and the House three days earlier.
The recession in the housing market, the worst since the Depression, along with higher fuel prices and a shrinking job market, is weighing on consumers and the economy.
The White House Office of Management and Budget this week cut its February forecast for economic growth this year to 1.6 percent from 2.7 percent. The OMB said it expected the economy to expand 2.2 percent next year, compared with its earlier forecast of 3 percent growth.
The foreclosure-prevention measure, unveiled in March, was bolstered after Treasury Secretary Henry Paulson sought and received temporary authority, through Dec. 31, 2009, to lend money or buy the stock of Washington-based Fannie Mae and McLean, Virginia-based Freddie Mac. The goal is to avert a collapse of the companies that buy or finance almost half of the $12 trillion of U.S. mortgages.
The treasury chief, who was the lead lobbyist for the White House, persuaded Bush to back off a threatened veto over a section of the legislation that provides $3.9 billion in grants to states to buy and repair foreclosed properties. Bush said he regarded it as a bailout of lenders.
The law also creates a tough regulator for Fannie Mae and Freddie Mac, the two government-sponsored enterprises.
Under the law, the Federal Housing Administration can now insure higher loan limits, up to $625,500 from $417,000 in high- cost areas. The law also raises the nation’s debt limit to $10.6 trillion from $9.816 trillion to accommodate the Paulson plan.
A new FHA program, a unit of the U.S. Department of Housing and Urban Development, would insure up to $300 billion in refinanced 30-year fixed loans for about 400,000 borrowers struggling with their monthly payments after loan holders agree to cut their mortgage balance.
The measure would offer $15 billion in tax breaks, including provisions offering the equivalent of interest-free loans worth up to $7,500 for first-time homebuyers. States would be able to offer an additional $11 billion in mortgage revenue bonds to refinance subprime loans.
Jennifer Furtney Ellenor