Login Registration
 
 
 
Submission Guidelines Recent Approved Articles Featured Articles
Submit Free Article
Home About Us Advertising GuideLines Do's & Don't T & C FAQ Contact us
  Home Real Estate Articles Investment Articles
 
HostJinni Promotions
Articles Category
Arts & Entertainment
Automotive
Business
Cancer
Careers
Communications
Computers & Technology
Finance
Food & Drink
Gaming
Health & Fitness
Home & Family
Home Based Business
Home Improvement
Insurance
Just for Women
Kids & Teens
Legal
News & Society
Online Business
Online Tickets
Pets
Real Estate
Reference and Education
Relationships
Self Improvement
Shopping
Sports & Recreation
Travel & Tourism
Writing
  Member Area
Author Login
Free Registration
Authors From Country
 
  Helpful Topics
How to Write Articles
Free Early Approval Tips
Why Article Submission
 
  Best of Webzine
Leader Board
Most Viewed Articles
Top Rated Articles
Archive
  WebZine Status
Total Articles -17085
Registered Authors - 2899
Featured Articles - 340
Articles added this
month - 302
 

An Overview Of New Tax Incentives & Lending Requirements For Housing

    -    

Attempts by Federal and State governments in the first quarter of 2009 to stimulate home sales have resulted in the creation of significant incentives for buyers seeking to take advantage of attractive housing prices across the United States. In order to reduce the large inventories of available homes for sale and thereby stabilize housing values that serve as security for loans held by financial institutions and investors around the world, an irresistible environment for real estate investment has been established that deserves closer examination.

American Recovery and Reinvestment Act of 2009

Included in what has become otherwise known as the Federal Economic Stimulus Plan, the United States federal government increased the first-time home buyer tax credit previously implemented by The Housing &
Economic Recovery Act of 2008 (Summer 2008) from $7,500 to $8,000, and removed the requirement that the credit be paid back in the future. The expiration date for receipt of the credit has also been extended from July 1, 2008 to Dec. 1, 2009. Consequently, homebuyers must have purchased a home after January 1, 2009 and before December 1, 2009 to be eligible for the $8,000 credit. This credit only applies to first-time home buyers purchasing owner-occupied homes and not investment properties.

State Tax Incentives

Many state governments are also independently attempting to address housing market distress within their own state lines by enacting legislation that provides further tax incentives for prospective home buyers. For example, the California state legislature passed a new-home buyer tax incentive as a portion of the stateís 2009-2010 budget. According to this incentive, purchasers of new single-family homes, that have never been previously occupied, as their principal residence between March 1, 2009 and March 1, 2010 will receive a tax credit equal to the lower of 5% of the purchase price or $10,000. Therefore, first-time home buyers in California who purchase a new home as their single family residence between March 1, 2009 and December 1, 2009 should qualify for both the Federal $8,000 tax credit and the State of California $10,000 tax credit at the same time, resulting in a combined $18,000 tax savings.

FNMA Lending Requirements Relaxed for Investors

Federal government sponsored enterprises have also reached out to
real estate investors by providing them with increased ability to leverage funds and purchase more investment properties. Fannie Mae (FNMA) has announced that on March 1, 2009 it will increase the maximum number of permissible financed properties from 4 home loans to 10 home loans for borrowers seeking to purchase non-owner occupied properties.


Investors attempting to take advantage of this policy revision must: have a 720 FICO score or higher, show funds in reserve to cover six months of future payments, pay a 25% down payment, have no history of foreclosure or bankruptcy, have no delinquent payments within twelve months, and provide full documentation of all rental income.

Time will only tell as to whether these bold incentives will serve to generate the requisite number of home sales to effectively stabilize housing prices and the economy as a whole. Regardless of whether these enticements will succeed on a macro-economic level, the cumulative effect of astonishing low housing prices and interest rates combined with these new measures has clearly created a housing market ripe for prospective buyers.

 
Like this article..? Rate it here:  Votes | Average: 1 out of 5  Votes | Average: 2 out of 5  Votes | Average: 3 out of 5  Votes | Average: 4 out of 5  Votes | Average: 5 out of 5     44 votes, average: 4.91 out of 5    
About Author
   
Articles Stats
  Published Date - February 24 2009
  Total Views - 1201
  Total Votes - 44
  Average Rating - 2
  Comments - 0
  Mr. Brian S. Icenhower
Brian S. Icenhower, Esq., BS, JD, CRB, CRS, ABR, a California Association of Realtors Director, practicing real estate attorney, a real estate expert witness and litigation consultant, a prosecution consultant of Tulare County District Attorney Real Estate Fraud. He may be contacted at bicenhower@icenhowerrealestate.com, or www.icenhowerrealestate.com
 
Particular Article
 
Author Article
  • Are you planning to buy or sell a property in Ingleby Barwick
  • [2010-06-23 ]
    Buying a property in Ingleby Barwick can be an exciting experience as well as a wise investment. Read More...
  • Hire Competent Estate Agent for Property Investment in Stockton on Tees
  • [2010-06-23 ]
    Growth in population and rapid change in socio-economic culture has created ample investment opportunities of buying house properties in Stockton on Tees. Read More...
  • High rise in Stockton Real Estate after Recession
  • [2010-06-14 ]
    World-wide economic scenario is fast improving which offers some great investment opportunities in real estate sector in North East England. Read More...
  • Reputed estate agents can help you in finalizing property deal in Ingleby Barwick
  • [2010-06-08 ]
    Are you planning to buy or sell a property in Ingleby Barwick which is Europeís largest private residential estate? If you are new in property sale or purchase field, it is recommended you get some professional services to get the best deal at most reasonable price. You may contact some reputed estate agents who will be too pleased to offer assistance that you may need. Read More...
  • Be Careful While you Buy Cheap Spanish Property and Marbella Property
  • [2010-03-12 ]
    When you Google for cheap Spanish property and Marbella property you might come across many sites with details for them and feel itís an easy task. But in reality it is still difficult Read More...
  • Pre engineered buildings are the answer for modern construction needs
  • [2010-03-01 ]
    In order to build a building that is strong, durable, and is quick to construct and practically possible to plan and implement, pre engineered buildings are the answers which perfectly fits the bill. Read More...
  • Real Estate Investing: Full Time or Part Time?
  • [2010-02-19 ]
    On the way to real estate wealth, is it best to start out part time, or go full steam ahead full time? Read More...
  • Building the Ultimate Real Estate Investment Portfolio
  • [2009-12-16 ]
    Interview with: Russell Chaplin, Global Real Estate Strategist, UBS Global Asset Management Read More...
  • Branson Missouri Vacation Rental Homes and Condos
  • [2009-11-12 ]
    Did you know that over 8 million people visit the Branson area annually? In todayís economy, this is quite an accomplishment. One reason so many people still head to Branson is our prime location. Nestled in the heart of the Ozark Mountains, Branson is just one dayís drive from 25% of the United Stateís population. The newly opened Branson Regional Airport, the first privately owned and operated commercial airport in the U.S., makes it even easier for tourists to reach our family-friendly vacation destination Read More...
  • Finding the Right Orange County Dream Home or Investment Property for You
  • [2009-09-01 ]
    The current dip in the market is sure to not last long which means that there is no time like now to purchase an Orange County Foreclosure. Shopping through the many Foreclosures in Orange County for your dream home or the right investment property can be like searching for a needle in a hay stack. You are going to need to find an Orange County Foreclosures specialist you can trust. Thatís where the OC-REO Team can help! Read More...
  • Living With COPD
  • [2009-08-03 ]
    One of the most common diseases that affects the aging population of California is COPD. COPD ( chronic obstructive pulmonary disease), is a progressive disease that makes it hard to breathe. Read More...
  • How to be more successful by Educating and not selling PODCASTING
  • [2009-06-06 ]
    A lucrative career in real estate, Insurance, Financial planning and many other professions used to mean shaking a lot of hands and praying for favorable market conditions. Read More...
  • TARP Money and Credit Card Debt The USD 700 Billion Elephant in the Room
  • [2009-05-29 ]
    If you\'re a bank, things are looking up! The $700 billion from the Troubled Asset Relief Program (TARP) has largely gone to buoying up financial institutions Read More...
  • Give the Housing Market an Enema its Full of Crap
  • [2009-05-27 ]
    Stimulus plans, band-aid solutions for struggling homeowners and short sighted solutions are not going to get our country out of this current housing crisis. We need to give the system an enema. Read More...
  • The Relationship between Home Prices and Rent Amounts
  • [2009-04-14 ]
    It is widely accepted that rent amounts are a fundamental factor in determining the value of housing. If housing prices rise too far out of line with rents.. Read More...
     
     
      Submit Your Articles - Submit Quality Articles - Quality Articles Submission  
      WebZine Articles (webzinearticles.com) is a registered trademark. All Rights Reserved. 2011