President Bush signed the "Housing and Economic Recovery Act of 2008" on July 30, 2008.  The bill offers several incentives designed to stimulate and energize the housing market.

The Homebuyer Tax Credit is the highlight of this legislation for most buyers & sellers:

• The maximum credit amount is $7,500 (10% of sales price for homes under $75,000)
• The tax credit will be available for any qualified purchase between April 9, 2008 and June 30, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• The tax credit is available to first time buyers or people who have not owned a principal residence during the three-year period prior to purchase. 

The credit is repayable over 15 years (making it, in effect, an interest free loan). 

Seller-funded down payment assistance programs will not be allowed after October 1, 2008.  Buyers interested in these programs need to close by the end of September.  These programs allow buyers to use FHA loans with a minimal investment.

Buyers who may need this assistance need to act quickly in order to take advantage of these seller-funded down payment programs.

Consumers should consider purchasing now, as the tax credit should help drive inventory levels down over the next 6 to 9 months.  In 1975, Congress enacted a $2,000 tax credit and within a period of 9 months, buyers purchased a then-record number of unsold homes on the market.

For more information on the Tax Credit or Seller-funded down payment assistance programs, please contact a Realtor at one of our offices:

Germantown  (901) 753-0700

Collierville  (901)259-8500

East Memphis (901) 259-8550

Olive Branch (662) 548-2000

Source: National Association of Realtors & National Association of Homebuilders