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:

• Homebuyer tax credit - On November 5, 2009, Congress passed a bill that included an extension and expansion of the home buyer tax credit. The bill extended the $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners were eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.
• The Illinois Housing Development Authority Home Start Loan Program offers first-time homebuyers a 30-year FHA insured mortgage and the optional Down Payment Assistance Loan, offering 3 percent of the purchase price, up to $6,000.
• FHA 2010 loan limits - Higher FHA loan limits remain in effect through December 31, 2010.
• 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.