Economic Recovery Package/Stimulus Plan affects Lakeville Home Buyers and Owners!

Many Lakeville area residents have been closely watching the debate over the Economic Stimulus Plan of 2009. It appears to be settled now and is scheduled to be signed into law by President Obama on Tuesday, February 17th. Here are the highlights of the plan as they relate to homeowners or home buyers:

- First time home buyers who purchase a home before December 1, 2009 will be eligible for up to an $8,000 tax credit. A first time home buyer eligible for this credit would be someone who hasn’t owned a home in the 3 years prior to buying a home in 2009. These buyers would need to stay in their new home for at least 3 years or they could be subject to paying back some of the credit. Income limits for eligibility are $75,000 for single filers and $150,000 for couples. This is an improvement over the previous law which allowed up to a $7,500 ‘credit’, which was actually a loan that needed to be repaid.
- Homeowners who purchase highly efficient furnaces, air conditioners or heat pumps will be eligible for a tax credit of up to $1,500. This tax credit also applies to purchases of energy efficient windows or upgraded house insulation.
- Items not directly related to housing but of value to your bottom line are the $400/$800 income tax credits; the sales tax deduction for purchasing a new vehicle in 2009; and a tax credit increase from $1,800 to $2,500 for tuition paid by college students or their parents.

There are many components to this Economic Stimulus Plan, some of which we hope will help loosen the credit market so that more potential buyers can qualify for loans.

Lakeville real estate sales continue to be slow but home and investment property buyers are finding some great bargains!

Possibly related posts:

1. Tax Advantages of Home Ownership
2. 2010 Home Buyer Tax Credit
3. Fall 2009 Lakeville Real Estate Update
4. Lakeville Area Real Estate in 2009
5. August 2008 Lakeville Home Update!

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