Housing Stimulus

Housing Stimulus

The American Recovery and Reinvestment Act of 2009 is a $780 billion package of tax cuts (mostly for 2009) and spending intended to occur in 2009 and 2010. Provisions include:

• First-time homebuyer tax credit of $8,000 with no repayment requirement for buyers who purchase a home between Jan. 1, 2009 and Dec. 1, 2009.
• The Illinois Housing Development Authority Home Start Loan Program offers first-time homebuyers a 30-year FHA insured mortgage and an advance loan in anticipation of their first-time buyer federal tax credit. View or download an informative presentation about the program.
• FHA 2009 loan limits - Higher 2008 limits will be reinstated for 2009, except in communities where the 2009 limit is already higher.
• Neighborhood Stabilization – Funding will be given to states and municipalities to redevelop abandoned and foreclosed homes. Learn more about Illinois NSP.

REALTORS® support the Homeowner Affordability and Stability Plan, which was designed to allow four to five million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. Learn more at MakingHomeAffordable.gov.