Insurance and Credit

With President Obama signing the stimulus package , there is a brand new version of the tax credit for home buyers. You can of course get this credit when using your VA eligibility to buy a home. Here are some highlights:

#1 – you no longer have to pay back this tax credit if you buy your house between Jan 2009 to Dec 2009, and do not sell your home within 3 years

The tax credit is only good until December 2009.

Say you owe $3,000 in back taxes, you will get a $5,000 from the IRS. Not a bad reward for buying a house.

This tax credit is only good until December 2009

So if you buy a house before Dec 2009 this year, you could have $8,000 in taxes eliminated. If you owe less than $8,000 you will get the difference refunded. So if you owe $4,000 in taxes, you will eliminate the $4,000 + get a refund for $4,000! You could put this money in the bank as cash reserves or use it to assist you in furnishing your new house or making improvements.

Additionally, the stimulus plan is raising the FHA and Fannie Mae and Freddi Mac loan limits back up to $729,000 in many parts of California. This means better interest rates and lower down payments for buyers in those higher price categories.

Give me a call if you would like to discuss using a zero down VA Loan to purchase a home. Rob Chomentowski

Sr. Loan Officer and FHA and VA Loan Specialist

858-922-7899 (direct)