Good News for First Home Buyers

In an action aimed at stimulating the economy and stabilizing the housing market, Congress recently enacted, the American Recovery and Reinvestment Act (H.R. 1), which will save and create 3.5 million jobs, provide 95 percent of American workers an immediate tax cut, increase renewable energy and invest in science and technology. Among its provisions, the bill increases the first-time homebuyer's tax credit to $8,000 on homes purchased between January 1 and December 1, 2009, and removes the current repayment requirement. For 2009, the measure also increases the FHA, Fannie Mae and Freddie Mac loan limits back up to the 2008 levels and gives the Secretary of Housing and Urban Development discretion to set higher limits in subareas.