Joe's Blog

One thing that the President and Congress can agree on is that a major part of the recovery has to do with homeownership.  That is why the powers that be have included an $8000.00 tax credit for single individuals earning up to $75,000 and for married couples that earn up to $150,000 per year.   For those earning more than these amounts, you will still receive a credit for purchasing.  Now, please be clear that this is a credit which is different than a deduction.  That means that if at the end of 09 you are even and will not recieve a refund, you will now be elgible to recieve a refund of $8000.00 if you purchase this year.  That, coupled with historically low interest rates and 2002 prices, may be just what is needed to get the purchase market moving.

In addition to the credit, the bill provides for higher loan limits as well.  In fact, the new high balance conforming limit will be moved up from $625,000 to $729,750.  This will allow people to purchase a property for $729,750 with only a ten percent down payment at a highly competitive interest rate. 

Lastly, the Congress voted to raise the limits on reverse mortgages which are mortgages designed specifically for seniors age 62 and older.  This new limit will allow many seniors who were unable to qualify to now qualify and recieve more of their home equity to help support their retirement income.