Housing Stimulus

The American Recovery and Reinvestment Act of 2009 (H.R. 1) increases the first-time homebuyer tax credit to $8,000 and eliminates the repayment requirement for buyers who purchase a home between Jan. 1, 2009 and Dec. 1, 2009. Other housing measures in the bill include:

• FHA 2009 loan limits - Higher 2008 limits will be reinstated for 2009, except in communities where the 2009 limit is already higher. Check to see what your area limits are.
• Neighborhood Stabilization – Funding will be given to states and municipalities that are recipients of Community Development Block Grant dollars to stabilize neighborhoods and redevelop abandoned and foreclosed homes. Link to learn more about Illinois NSP program.
• "An $8,000 tax credit for first-time homebuyers and President Barack Obama’s new plan to minimize foreclosures and keep more people in their homes will go a long way toward stabilizing and jumpstarting the housing market," said IAR President Pat Callan in a statement.

Tax credit can be used with IHDA MCCs. According to the Illinois Housing Development Authority, the $8,000 tax credit can be used in tandem with IHDA’s Mortgage Credit Certificate (MCC) programs, which recently received $99 million in funding.

Source: www.IllinoisRealtor.org