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The Housing Stimulus, known by its official name as the American Recovery and Reinvestment Act (ARRA) of 2009, is now law. Among other provisions, the bill includes the following items to assist homebuyers: * Homebuyer Tax Credit: First-time homebuyers may accept an $8,000 tax credit for the purchase of a principal residence on or after January 1, 2009 but before December 1, 2009. The credit does not need to be repaid. The credit is claimed on a tax return to reduce the first-time homebuyer’s income tax liability. If any portion of the $8,000.00 credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. Please click here to read a list of Frequently Asked Questions about the original 2008 and the new 2009 homebuyer tax credit. * FHA, Fannie Mae, and Freddie Mac Loan Limits: ARRA reinstates 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009. Source: The National Association of REALTORS® Please click here to see the list of limits for Wisconsin organized by county. Please click here for a list of Stimulus frequently asked questions. |