A quick summary on the stimulus Bill of 2009 as it relates to home buyers in Carmel, Carmel Valley, Pebble Beach and other areas of Monterey County.
> First Time Homebuyer’s Credit – First time homebuyers (which is defined as not owing a home within the past three years), are now eligigle for a tax credit of $8,000 or 10 percent of the purchase price, which ever is less. The entire $8,000 should apply for Monterey County as we’re not likely to see many sales below $80,000. Purchasers have until November 30th to purchase their primary residence. The credit does not apply to second homes or investment properties and is a direct $8,000 reduction in your Federal Tax liability. To apply is as simple as filling out your 2009 Federal Tax form next year. The National Association of Home Builders, www.nahb.org has information on their web site about the tax credit. Please consult a tax profession to be certian you qualify.
> 2008 Jumbo Agency loan limit of $729,750 has been restored for Monterey County. This may be the bigger boost to the Monterey housing market as the most recent Jumbo Agency limit has been $483,000. The “jumbo agency” loan category applies to “Fannie Mae,” “Freddie Mac” and “FHA” loan products. Guidelines and rates are similar to standard programs. These products will be a helpful boost to the mid-range housing market, i.e. $500,000 — $950,000. The $729,750 limit will be effective for the 2009 calendar year.