Federal Housing Stimulus Package | First Time Home Buyer Tax Credit | Home Refinancing Package
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The Housing Market Stimulus Package 

August 4, 2008

On July 30, 2008, President Bush signed into law a bipartisan housing stimulus package. With passage of this new bill, first-time home buyers, including those who have not owned a home in the last three years will be eligible for a significant tax credit. The credit is up to 10 percent of the home’s purchase price. The maximum allowance is capped at $7,500 for a married or unmarried couple who jointly purchase the home or $3,750 for those who file separately.

The tax credit applies to homes purchased on or after April 9, 2008 and before July 1, 2009.

Eligibility for the tax credit diminishes with higher incomes. For someone filing separately with an adjusted income of more than $75,000 the tax break starts to decrease and is completely phased out at $95,000 income. For joint purchasers who also file their taxes jointly, the tax break decreases beginning at $150,000 and ends at $170,000.

The bill also provides for government backed loans to allow current struggling home owners to refinance into more affordable loans.