Malibu California Real Estate: National Association of Realtors Pleads for New FHA Loan Limits and The $8,000 Tax Credit To Continue
NAR (the National Association of Realtors) has asked Congress for the $8,000 First Time Homebuyer Tax Credit program, which ends on November 30th to be extended until 2010 and that the new FHA Loan Limits to remain in place for a while longer.
Both of these programs are key to the housing markets recovery they say. Current FHA loan limits are as high as $729,750 in high cost areas, and are set to expire at the end of the year and revert to lower amounts. After all, FHA backed loans are forming the backbone of the lending market at the moment.
According to NAR: “Making the current FHA loan limits permanent would ensure liquidity in the housing market and make mortgages more affordable for qualified buyers at a time when the market is showing signs of a fragile recovery…”
Also, in terms of the $8,000 Tax Credit, which the National Association of Realtors believes should be continued into next year they say, that every home purchase pumps into the recovering economy about $63,000 – the equivalent, they say of adding one new job to the employment figures. They also say that “the 355,000 to 400,000 transactions directly attributable to the credit made a significant dent in the housing inventory and will help to stabilize home prices.”
This debate aside, Contact us today for help in buying a home in the area to take advantage of the programs while they are still around!
If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.
Subscribe to our blog using our RSS feed. (Click here!)
Judy Kunisaki – CA DRE license 00963582
You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
October 29th, 2009 at 11:54 pm
[...] This credit has been one of the reasons for the recent rise in home sales and in some areas home prices. It has been key to many of the recovery efforts by the government to boost the economy. This is not long after pressure by NAR to extend the credit! [...]
December 28th, 2009 at 6:58 am
[...] “FHA approved” right now means a 3.5% down payment. Starting early next year, “FHA approved” will mean 3.5% down plus a financially stable association approved by your lender. These new guidelines really ensure that condo associations are managing their affairs well to minimize the risk to borrowers and lenders. First time home buyers are generally thought of as the primary market for FHA financing. There is something to that, but in today’s world, many who bought their first homes years ago and lost them during this recession will appreciate the FHA financing availability even more than those coming out of rentals. Particularly with the current FHA loan limit having been extended as well as the tax credit incentiv… [...]