Altadena Real Estate

Housing and the Stimulus Package

I am pleased to say that the newly passed economic stimulus package includes several key components that are great news for home buyers and owners alike:

  • “Conforming” loan limits will be raised to $727,000 in high cost areas, including Los Angeles
  • A tax credit given to first time home buyers (i.e. those qualified buyers who have not purchased a home in the last 3 years) will be raised to $8,000 with NO payback; Buyers will need to close escrow by 12/31/09 to be eligible
  • Over $50 billion in funding for foreclosure mitigation

In addition, Congress preserved mortgage interest deductability, real estate tax deductability, and the $250,000/$500,000 cap gains exclusion.

Bottom line: these new, and old, incentives combined with lower interest rates and an abundance of housing stock, make it a great time to own a home.

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