The effect on real estate of the American Recovery and Reinvestment Act of 2009
On Feb. 17, President Obama signed the American Recovery and Reinvestment Act of 2009 into law. Lets look at some of the highlights.The bill provides an $8,000 tax credit to first-time homebuyers (those who have not owned a home in the past three years) who purchase a house between Jan. 1 and Dec. 1. This is a tax credit and does not have to be repaid (unless you sell the house within three years). You claim it on your tax return for 2009 to reduce your income tax liability. Whatever amount isnt used toward taxes is given to you in cash. The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. See your accountant for details.FHA, Fannie Mae and Freddie Mac loan limits: The bill reinstates last years 2008 loan limits for FHA, Freddie Mac and Fannie Mae loans. Here are the estimated amounts for our local areas: Garfield County: $425,000. Eagle and Pitkin Counties: $729,750. These limits will expire at the end of 2009.Energy Efficient tax credits: Through 2010, homeowners will be able to claim a 30 percent tax credit (up from 10 percent) for purchases of new furnaces, windows and insulation. Get credit for a remodel.There are also provisions for Neighborhood Stabilization and Rural Housing Service. These programs will provide additional loans and grant monies when neighborhoods are decimated by foreclosures, plus provide guaranteed and direct housing loans for those who fit the criteria.Things are turning around how can you take advantage of these provisions? Call your local Realtor for information on the local housing market. Maybe your next home is waiting for you.Shannon Kyle, S. Kyle & Co., is co-chair of the Glenwood Springs Association of Realtors Public Relations Committee. For questions, she can be reached at 379-7517.
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