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Housing and Economic Recovery Act of 2008

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By now I’m sure you’ve heard that President Bush signed into law on July 30, 2008 a bill that is designed to stimulate the housing market, relieve some homeowners facing foreclosure, and revamp Fannie Mae and Freddie Mac. Here’s a synopsis of how the bill will help the housing market:

Tax Credit

1. The bill provides a First-time Homebuyer tax credit of 10% of the cost of the home, up to $7500. To qualify, you may not have owned a home in the three years prior to the purchase, and there is an adjusted gross income cap to be eligible.

2. The tax credit will be repaid over a period of 15 years, 6.67% of credit each year. Consider it an interest-free loan from George.

3. The effective date goes back to April 9, 2008, and it expires on July 1, 2009. So if you want to take advantage of the credit, you need to act fast.

Another portion of the bill provides refinance assistance for homeowners with subprime loan problems. That portion of the bill is effective October 1 of this year. One thing to understand, though; seller-financed downpayment programs (like Nehemiah) will be going away in October as well.

There’s a lot more to the Housing and Economic Recovery Act. But if you have been sitting on the fence waiting to see which way the housing market will go, now might be a good time to act. There’s plenty of inventory in the Lake Norman real estate market, and if you are a first-time buyer, you can still qualify for seller-financed downpayment help, and take advantage of the tax credit. You have a finite window here to let the seller and the president help you become a homeowner! If you’re not sure where to begin to access these programs, call or email me and I’ll help you get started on the road to home ownership!

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