1. NAR provided the latest update on the Senate’s action to extend and expand the home buyer tax credit.
After a long week of negotiation, an agreement on the scope of the expansion and extension has been reached. A vote will occur in the Senate this week, and the package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature. The White House has indicated that President Obama will sign the legislation.
The agreement on the extension and expansion of the credit is as follows:
- Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
- Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
- New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
- Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
- New anti-fraud limitations are imposed.
If you have not yet responded to the Call for Action to all members of Congress, do so at www.realtoractioncenter.com.
2. The FHA, Fannie and Freddie Loan Limits at the $729,750 level through December 31, 2010 was passed by the Senate and is now being sent to President Obama for his signature into law. Since the provision is part of the Continuing Resolution, which is necessary to keep the government operating, it is expected to be signed into law quickly. This was an important victory for market stability across the board.
