Housing Stimulus Bill or H.R. 3221

We have just received word that President Bush has signed the Housing Stimulus Bill also known as the Housing and Economic Recovery Act of 2008 or H.R. 3221.

The National Association of REALTORS has released a summary of the Key Provisions of the Bill. Click Here to view that summary.

Here is our understanding of the major points of the Homebuyer Tax Credit:

• The credit is an interest free loan paid back over 15 years at $500 per year
• The loan is forgiven if you sell your home and don't have enough equity to pay back the loan
• The $7500 Tax Credit is refundable. In other words, if you owe less than $7500 on your federal return, you will receive a check back from the government for up to $7500. If you owe $2500, you would receive a $5000 check and so on
• The credit can be applied to year 2008 or 2009 tax returns depending on what year you buy your house
• To qualify, you can not have owned a home in the last 3 years
• To qualify for the full $7500 credit, you cannot earn more than $75,000 or you and your spouse filing jointly cannot earn more than $150,000 annually
• You can qualify for partial credit if making more than the above
• There are other details that we can answer specifically

This is a big deal. If low interest rates, a large selection of homes and affordable prices weren't enough to encourage you to buy, maybe this will help.

If you have any specific questions or would like to discuss your options, call us at 810.229.7000 or drop by the office at 802 W. Grand River Ave. in Brighton.