Okay get your mind out of the gutter. Not that kind of stimulation, but one of a political nature.
When it comes to politics, I will admit I don't know as much as the next guy. I didn't even know what GOP stood for until last year when I heard it on the news and the way I heard it there are two different meanings. (true politics I guess, one side can't agree with the other) Tell me something, what does an elephant have to do with politics?
So when the terms of the new Stimulus Package were rolled out, I thought to myself, "How is this going to affect the real estate market and the millions of people close to foreclosure?" Thankfully, NAR has broken down the parts of the bill that relate to homeowners and real estate in general. I'm glad too because the bill is over 1000 pages! My attention span is just long enough to write this post and that's about it!!
Here are some of the more important highlights relating to real estate as mentioned on the NAR website...
Home buyer Tax Credit - The bill provides for a $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
FHA, Fannie Mae and Freddie Mac Loan Limits-The bill reinstates last year's 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.
Neighborhood Stabilization- Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2089 (Public Law 110-289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, Realtors® in many communities have been making important contributions to their local communities' neighborhood stabilization programs.
Commercial Real Estate- Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commerical property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.
This next section is important if you're looking for a new home in Jackson, Barrow or Walton counties. Gwinnett county is not eligible for USDA loans.
Rural Housing Service- The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program's eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
These are just a few of the highlights. If you want to see the entire list, go to Realtor.organd check out what your $25 RPAC money is doing for you!
Steve Rider REALTOR with Keller Williams Realty Lanier Partners Braselton Ga, selling homes in Winder, Braselton, Dacula, Lawrenceville, Buford, Grayson, Loganville, Monroe and surrounding areas of Barrow, Walton and Gwinnett County Georgia. Go to WWW.SteveRider-Realtor.com to see my featured listings or search for your new home.
If you're looking for a home in Northeast Georgia contact me either by clicking on the email link or call me toll free at 800-765-0460 or 404-663-7063 direct. I'm a life long resident of this area with life long knowledge of the market.
Gwinnett Realtor Steve Rider-Are you being Stimulated?
