The Senate has tentatively agreed to extend the $8,000 first-time homebuyer tax credit. The home buyer's have to have a Contract in writing by April 30th 2010 and close before July 1st in order to receive the credit. They are also planning to offer a $6,500 credit to existing home owners who have lived in their current home for 5 consecutive years in the past 8 years.
On another note, Congress has passed a resolution to extend the current higher conventional loan limits for Fannie, Freddie and FHA. This will extend these limits through 2010.
Extending both the tax credit and the higher loan limits is intended to help the housing market recover by encouraging people into the market and making loans for higher priced homes more affordable.
Now these issues are in the hands of President Obama. Stay tuned...
Source: Wall Street Journal, Corey Boles and John D. McKinnon (10/29/09)and Mortgage News Daily, by Adam Quinones (10/30/09)
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