Keller Williams Realty Timely Homebuyer Tax Credit Info

Mortgage Help At Keller Williams Realty one of our main goals is to provide our homeowners and clients timely information needed to make critical decisions on one of their largest investments – their homes. Below is information regarding the 2009 Homebuyer Tax Credit, The Making Home Affordable Program, and various links to further information regarding current housing legislation and the economic environment. We hope this helps you navigate through the endless amounts of information available. As a partner in making home ownership possible for you, it’s important we continue to find ways to make this dream true for you and your family.

2009 Homebuyer Tax Credit The homebuyer tax credit is one of the ten key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009. The bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser's income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. Frequently asked questions Expanded Tax Break Available for 2009 First-Time Homebuyers NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit

Making Home Affordable Program On February 18, 2009, President Obama announced his Making Home Affordable Program, designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages. In doing so, the plan not only helps responsible homeowners behind on their payments or at risk of defaulting, but prevents neighborhoods and communities from being pulled over the edge too. The plan also strengthens the federal commitment to Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs). Making Home Affordable Program: Guidelines On March 4, 2009, the administration released detailed guidance on the Making Home Affordable Program. Here are two key elements of the Obama plan: 1. The Home Affordable Refinance Program.  Under this program, eligible borrowers may refinance loans that Fannie Mae or Freddie Mac (the government sponsored enterprises, or GSEs) own or guarantee.  The program can help homeowner-occupants who are current in making loan payments and have loan-to-value ratios (LTVs) above 80 percent but not more than 105 percent.  Cash out refinancings are not permitted.  The program ends in June 2010. 2. The Home Affordable Modification Program.  This is a $75 billion program with lender, servicer, investor, and borrower incentives to make it work.  The program is limited to homeowner-occupants who are at risk of default or already in default and who have loans at or below the maximum GSE conforming loan limit of $729,750 (or higher for 2-, 3-, and 4-unit properties). Loan modifications under the program may be made until December 31, 2012. For more information visit http://hopenow.com/. For more detailed information, visit MakingHomeAffordable.gov.

Recommended Links: Visit the Treasury Department links below for the latest guidelines and information: Summary of Guidelines (PDF: 53K) Borrower Information: Making Home Affordable Refinance and Modification Options Borrower Q&As (PDF: 82K) Housing Counselor Q&As (PDF: 72K) Modification Program Guidelines (PDF: 90K) Fact Sheet - Updated Detailed Program Description (PDF: 73K)

Fannie Mae and Freddie Mac Guidelines Fannie Mae and Freddie Mac released guidelines on refinancing and loan modification options that implement President Obama's Making Home Affordable Program. GSEs Home Affordable Refinancing Programs GSEs Home Affordable Modification Programs Source: www.Realtor.org