Economic Stimulation For Home Owners
Part of the recently passed economic stimulus law is intended to get the real estate market back on its feet. So it’s no surprise that there are plenty of benefits waiting for folks who are ready to buy a new home or reinvest in their existing residence.
The most significant tax break goes to most first-time buyers, who can receive an $8,000 credit if they stay in their residence for at least three years. Existing owners who have seen the value of their homes collapse to below their outstanding mortgage balance, can be eligible for certain types of refinance loans. Some owners with Freddie Mac or Fannie Mae mortgages can have monthly payments reworked, so that they are no more than 31% of household income. Even homes valued at up to $729,750 are now more marketable, because FHA is now insuring loans up to this level and it will lead to lower interest rates.
If you want to make your home more energy efficient, you can benefit as well. 30% tax credits are available for installing geothermal heaters, battery-powered fuel cells and solar water systems, as well as energy-efficient roofs, windows and doors. Additional dollars will also flow to the states for use in weatherproofing programs.
For an informative slide show about program specifics from Forbes.com, click here.