A Ray of Sunshine

Living in the Pacific Northwest, you know what it's like to go days on end without seeing that big bright ball in the sky. The housing market has felt a little like that lately. You might want to dust off your sunglasses, there is some good news to report... finally.

Good News Item #1: Tax Credit for First Time Homebuyers
Congress passed legislation to help energize the housing market with a tax credit for first-time home buyers. Here are the details:
(1) Who is eligible: First-time buyers only
(2) How it is administered: The tax credit will NOT have to be repaid
(3) How much: The tax credit is 10% of the purchase price, up to $8,000.
(4) Time Frame: The credit is available for homes purchased between January 1 and December 1, 2009.
(5) Income Qualification: The full credit is available for singles who earn up to $75,000 and for couples earning up to $150,000. Check with your tax advisor for your eligibility.

More good news (can you believe it?)... For those who purchased their first home between April 9, 2008 and January 1, 2009, they may also be eligibly for a tax credit. For details, check out this web site sponsored by the National Association of Homebuilders: http://www.federalhousingtaxcredit.com/home.html

Good News Item #2: FHA Loan Limits Increased
The county-based loan limit that went away at the end of 2008 has returned. As a result of the American Recovery and Reinvestment Act of 2009 the Federal Housing Authority (FHA) has increased the maximum loan limits. The limit is variable based on county, and once again, it is $475,000 for Kitsap. What does that mean for a borrow? For loans greater than $417,000 and up to or equal to $475,000, interest rates will be pretty reasonable.

What does that mean for you? If you buy a home up to $593,750 and put 20% down, you will be able to get a loan with a good interest rate because the loan will not fall into the Jumbo category.

Both of the above "Good News" items should help grease the wheels to get this market moving along.