Home-buyers and realtors alike across Northwest Arkansas and the River Valley are heaving a sigh of relief, after President Barack Obama signed into law the Worker, Homeownership, and Business Assistance Act of 2009.
For some, it's nearly impossible for them to buy a house, in a poor economy. Financial experts say a new federal extension and modification of a first-time homebuyer tax credit could help, but only if people know what they're getting into.
Changes to the home tax credit mean perks won't end when November is over.
"As long as people are under contract by the end of April, and they close the sale by the end of June of 2010, the same $8,000 federal tax credit is still in place," says Joel Doelger, Credit Counseling of Arkansas' Counseling Director.
The tax act will also raise the qualifying income level to $175,000 for individuals and $225,000 for married couples. Doelger explains: "then some people who earn slightly above that would be able to get partial tax credit."
And now he says it's not just first-time home buyers who qualify. "Current homeowners can also buy a home and take advantage of the credit." Doelger says this means people who have owned a home for five of the last eight years may qualify for $6,500. Realtors and finance experts say it's too soon to know if people will act on the extension, but they're hopeful.
"It's almost too early to tell, but I'm expecting to see people coming in," Doelger says.
Lindsey and Associates' Senior Vice President Realtor Gary Boyle says "that opens the door to a lot more buyers to come and get the tax credit, and we think that will make a lot of people jump off the ledge, so to speak. For the real estate industry, it's very good news because we do believe it will stimulate a lot more home buying."
But financial counselors like Doelger are sending out a warning.
"Does this mean I should rush out and buy a home? I would say, not necessarily. If your income is not stable, given the current market and your profession jumping into a home might be a risky business right now. If you feel like you're financially ready to do so, then I think this is a nice shot in the arm."
A new $800,000 limit on the purchase price of a house has also been added to the tax act.
For those who aren't sure if this tax act will fit their budget, experts at Credit Counseling of Arkansas say they're available to help folks figure that out, for free.
For more information, click here.
For some, it's nearly impossible for them to buy a house, in a poor economy. Financial experts say a new federal extension and modification of a first-time homebuyer tax credit could help, but only if people know what they're getting into.
Changes to the home tax credit mean perks won't end when November is over.
"As long as people are under contract by the end of April, and they close the sale by the end of June of 2010, the same $8,000 federal tax credit is still in place," says Joel Doelger, Credit Counseling of Arkansas' Counseling Director.
The tax act will also raise the qualifying income level to $175,000 for individuals and $225,000 for married couples. Doelger explains: "then some people who earn slightly above that would be able to get partial tax credit."
And now he says it's not just first-time home buyers who qualify. "Current homeowners can also buy a home and take advantage of the credit." Doelger says this means people who have owned a home for five of the last eight years may qualify for $6,500. Realtors and finance experts say it's too soon to know if people will act on the extension, but they're hopeful.
"It's almost too early to tell, but I'm expecting to see people coming in," Doelger says.
Lindsey and Associates' Senior Vice President Realtor Gary Boyle says "that opens the door to a lot more buyers to come and get the tax credit, and we think that will make a lot of people jump off the ledge, so to speak. For the real estate industry, it's very good news because we do believe it will stimulate a lot more home buying."
But financial counselors like Doelger are sending out a warning.
"Does this mean I should rush out and buy a home? I would say, not necessarily. If your income is not stable, given the current market and your profession jumping into a home might be a risky business right now. If you feel like you're financially ready to do so, then I think this is a nice shot in the arm."
A new $800,000 limit on the purchase price of a house has also been added to the tax act.
For those who aren't sure if this tax act will fit their budget, experts at Credit Counseling of Arkansas say they're available to help folks figure that out, for free.
For more information, click here.
