The housing bill recently signed by President Bush offers relief for many beyond those in danger of loosing heir homes to foreclosure. In addition to helping those hurt by falling real estate prices and adjustable rate mortgages Congress included breaks for first time homeowners, reverse mortgage borrowers, and jumbo loan mortgage holders.
First Time Homeowners - If you are buying a home for the first time you may be eligible for a federal tax credit of $7,500 or 10% of the purchase price whichever is lower. To qualify for the credit you must have modifies adjusted gross income of less than $75,000 for single filers, or $150,000 for married joint filers. For single filers the credit is reduced for modified adjusted gross income above $75,000 and disappears at $95,000, for joint filers the credit disappears for modified adjusted gross income above $170,000.
Reverse Mortgage Borrowers - The bill limits origination fees on reverse mortgages to 2% on loans up to $200,000 and then 1% on amounts beyond that up to a cap of $6,000. Congress also increased the maximum loan amounts for HUD issued loans.
Jumbo Mortgage Borrowers - Jumbo mortgages often cost more than conventional mortgages. By making permanent the increased lending limits for Fannie Mae and Freddie Mac you may be able to refinance a jumbo mortgage to a lower rate conventional mortgage for loans up to 115% of local median home price up to a $625,000 ceiling.
Labels: Mortgages, reverse mortgages, tax credit, taxes
