High Loan Limit, Homebuyer Tax Credit to be Extended Into 2010

October 29, 2009 No Comments »

2010

The higher home loan limits currently in place are expected to stick throughout 2010, according to National Mortgage News.

The Obama Administration reportedly supports an extension of the current enhanced loan limits for Fannie Mae, Freddie Mac, and FHA loans.

The maximum conforming jumbo loan limit of $729,750 (in the nation’s most expensive counties) is set to expire on December 31, at which point it would drop to $625,500 per the Economic Stimulus Act of 2008.

The true current conforming loan limit is $417,000 for condos and single-family residences.

Earlier this week, several agencies called on the Senate to move swiftly in dealing with the loan limits, as mortgage lenders were uncertain whether to approve such loans pending the extension.

Homebuyer Tax Credit Extension

Senate leaders have also agreed on extending the $8,000 first-time homebuyer tax credit, as well as a $6,500 tax credit for so-called “move-up buyers.”

The tax credit would be extended from its current expiration date of November 30 through to April 30, 2010 and give home buyers with a binding contract an extra 60 days to close.

The first-time homebuyer tax credit extension also comes with higher income eligibility limits, $125,000 for single filers and $225,000 for joint filers, up from $75,000 and $150,000, respectively.

The “move-up tax credit” applies to current homeowners who have used their current property as a primary residence for five of the previous eight years.

(photo: doug88888)

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