5.24.09 2009 Economic Stimulus Plan

Here is some information I have received regarding the areas of the stimulus plan created by President Obama that directly affect potential home buyers and home owners:

There are four sections of the 2009 economic stimulus plan that could be beneficial to homebuyers and home owners:
1) The Home Improvement Tax Credit
The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements, with a maximum of $1,500. Energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters are some eligible items. The contractor and/or manufacturer can give certification that energy efficiency standards are being met.

2) The First-time Home Buyer Tax Credit
The tax credit available to first time home buyers has increased to $8,000 for homes purchased between January 1, 2009, and December 1, 2009. This credit no longer needs to be paid back as long as you live in the home without selling it for at least 3 years.
The income limitations remain the same ($75,000 for single tax payers claiming the full credit and $150,000 for married tax payers). Also, the credit remains refundable. This means that first-time home buyers who owe less than $8,000 in taxes for the year are still eligible for the full $8,000 credit when they file their tax returns.

3) Higher Reverse Mortgage Loan Limits
The loan limits for FHA-insured reverse mortgages have been increased to $625,500 across the entire country. This coincides with another little-known change in the reverse mortgage arena: the availability of reverse mortgages on home purchase transactions. This is a fantastic opportunity for senior citizens to buy a new home and live mortgage payment-free without having to wait for their old home to sell. Seniors could also use this strategy to buy a new home and turn the old home into a rental or otherwise wait for market conditions to improve before trying to sell the old home.

4) $729,750 FHA and Conforming Loan Limits Restored in High Cost Areas
This makes higher cost homes more affordable in housing markets that have higher than average home values.