While it looked for awhile that we may be getting a $15,000 tax credit for home buyers, Congress has settled upon an $8,000 tax credit.
This just in from the National Association of Realtors:
1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.
So for now, higher conforming loan limits, an $8,000 tax credit, lower interest rates and an increase in eligible loans for investors. The bill passed the House today. Vote in the Senate is pending. More will come.........
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