The bill could help out some people looking to purchase a home, but also cuts programs that have helped in the past.

Maybe it won't surprise you to know that there are two sides to this new law and not everyone agrees with all the provisions that are included. No kidding? Yes, politics is a poisonous enterprise these days. Where did all the anger come from anyway?

For the record we aren't taking sides in the discussion of the Housing and Economic Recovery Act of 2008, it has some advantages for new home buyers, some relief for teetering mortgages, and some funding help that means taxes will go up to help pay for it all. In any case it's the law now and help is on the way, depending on how you define it. Pro or con we are likely to live through it. We’re in Prescott, after all, where life is good.

A National Association of Realtor letter to realtors says about the bill, “homebuyers will soon have access to more affordable financing, and first-time homebuyers (those who have not owned a home for three years) will receive a tax-credit to help them enter the market.”

One provision is for first time homebuyers. This means you or your spouse hasn’t owned a house for the last 3 years. So the term “first time homebuyer” can be misleading. If you had a home 4 years ago, you’d still qualify for this caveat in the bill.

If “first time home buyers” purchase a house between April 8th 2008 and June 30, 2009, they can get what is in effect an interest free loan from the government for up to $7,500. They are calling it a “tax credit” but since you have to pay it back I would put it in the loan category. Still, it’s interest free money, which is a good thing.

Meghan Knoy, a Certified Mortgage Planner with Cherry Creek Mortgage was doing some research on the FHA programs and how the Housing and Economic Recovery Act of 2008 will affect them. These program, like Ameridream http://www.ameridream.org/Newsroom/PressReleases/2008/AmeriDreamRespondsToEliminationOfDPA help people with their downpayments. According to the website, the program, which helps teachers, firefighters and others with down payments, will be eliminated October 1st, 2008.

A very readable and detailed list of the provisions is provided on the National association of Realtors website. http://www.realtor.org/gapublic.nsf/pages/hr_3221_key_provisions?OpenDocument Well worth the read if you are thinking of buying a house now and into the future. Basically this bill will help people get financing, rescues some folks who are about to lose their homes, and temporarily up the VA loan limits, among other things.

Live it up!

Craig Mann is a local ERA realtor. If you have questions, you may call him at 928.899.4528. Alternatively, you can visit his web site, CraigMann.net    
 

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