The housing market in the Tri-Cities is still strong as is the supply of homes as well. And for those first-time homebuyers there is added incentive. Recently, President Bush signed into law, the housing tax credit bill. Here are some of the details:
- A temporary first-time home buyer tax credit. the tax credit wills timulate home buying, reduce excess supply in housing markets and shore up home prices.
- FHA modernization and expansion. A revitalized FHA will have greater flexibility to respond to the needs of borrowers, enable more working families to become home owners and play an important role in the mortgage markets. To address the foreclosure crisis, the FHA is given additional authority to insure up to $300 billion of mortgages to refinance loans headed for foreclosure.
- GSE (goverenment-sponsored enterprise) reform. The law reforms the regulation of Fannie Mae and Freddie Mac and permanently increses the conforming loan limit to help buyers in high-cost markets. To reassure financial and global markets, the government will temporarily expand its line of credit to Fannie and Freddie and permit the U.S. treasury to purchase an equity stake in the companies through the end of 2009.
- Mortgage Revenue Bond Program. The measure gives states the ability to issue an additional $11 billion in mortgage revenue bonds, which will help strapped borrowers seeking to refinance their home loans.
- Low Income Housing Tax Credit. Enhancing this program will expand the supply of much-needed affordable rental housing.
A new website, www.federalhousingtaxcredit.com, which includes a set of comprehensive questions and answeres about how the credit works and how consumers can put it to their advantage.