ARRA – American Recovery and Reinvestment Act

This was posted at www.financialstability.gov yesterday.

“On Tuesday, February 10th, Treasury Secretary Timothy Geithner outlined a comprehensive plan to restore stability to our financial system. In the address, Secretary Geithner discussed the Obama Administration’s strategy to strengthen our economy by getting credit flowing again to families and businesses, while imposing new measures and conditions to strengthen accountability, oversight and transparency in how taxpayer dollars are spent. And Secretary Geithner explained how the financial stability plan will be critical in supporting an effective and lasting economic recovery.”

Geithner’s outline was short on details and even shorter on positive reception from both markets and pundits alike.  There is still much to be sorted out, but here, I’d like to provide you with the basics regarding the First Time Buyer tax credit of $8,000.

* The Tax Credit is available to all “First Time Buyer’s”.  The current definition of a “First Time Buyer” is anyone who has not owned a primary residence in the past three years.

* The Tax Credit is for 10% of the purchase price or a maximum of $8000.00.

* The Tax Credit is available for those who purchase between January 1st of 2009 until December 1st of 2009.

* You must be a U.S. Citizen to qualify

* Single taxpayers with an income up to $75,000.00 and married taxpayers with incomes of up to $150,000.00 qualify for the full tax credit.  Partial credit is available to taxpayers with incomes up to $95,000.00 or married couples with incomes up to $175,000.00.

 * The Tax Credit does not need to be paid back unless the property is sold within the first three years.  In that event the credit is taken back out of the proceeds at sale.

I will follow with more details as they are specified.

Best,

JLC

Welcome Back

Quite a few changes have taken place since I last posted.  I have moved to the West Loop, or Sunset Circle as I like to call it. ( Give it a minute) Moved to a new Brokerage House, The Real Estate Group located in Lincoln Park next to Elbow Room.  December concluded the best of my five years in Real Esate and I look forward to improving in 2009.

Moreover, we have seen drastic changes in our political leadership and the state of our economy.  Over the coming weeks legislation will pass that will certainly impact the availability of credit for home purchases, include tax incentives for at least first time, possibly all home buyers, and lastly attempt to mitigate the foreclosure fiasco.

Plan to check back here as I will attempt to seperate the fluff from the meat of the legislation in an effort to explicate how the new laws will affect our locale real estate market and you personally as a buyer or seller.

Finally,  Check out this blog if your interested in the latest news from the mortgage industry.  It is written by a mortgage lender I work closely with and provides up to date and quality information.  If you worked with me before you know the name well.  

Joe Burke - www.yourchicagomortgageguy.com

Best,

JLC