2008 Economic Stimulus Act also helps first-time homebuyers
Many people have already received their economic stimulus payments, but the Internal Revenue Service wants residents to know that it’s still not too late to file and receive the payment.
“You can still file your 2007 tax return in order to be eligible for the economic stimulus payments even though April 15 has passed,” Deirdre Harris, of the IRS Media Relations Office, said. “We know there are people who are eligible for an economic stimulus payment who have not yet filed a tax return.”
Starting in April, the U.S. Treasury began issuing economic stimulus payments of up to $600 for individuals and $1,200 for married couples. Parents also received an additional $300 for each eligible child.
The IRS says that millions of people are eligible but some may not know it. People who have at least $3,000 from wages or certain benefits from Social Security, Railroad Retirement and Veterans Affairs, may be eligible for $300. These include retirees, disabled vets and low-wage workers who normally don’t file a tax return. This year, they must file to receive the stimulus payment.
“People can help not just the IRS, but perhaps themselves, friends or family,” Harris said. “They need to file a return. We’ll do the rest.”
Visit www.irs.gov for details.
The economic stimulus package doesn’t just help by giving some much needed cash, but it also assists first-time homebuyers, those who are looking to move into a bigger home and those who are considering refinancing.
“We wanted to be sure people knew that the legislation is about more than just rebate checks,” Julie Otillio, of AmCor Mortgage, said. “It can also have a positive impact on current and future homeowners.”
A portion of the $168 billion Economic Stimulus Act is designed to help certain “high-cost regions” of the struggling housing market. In fact, the maximum FHA mortgage amount for the entire New Orleans metropolitan area has increased from $200,160 to $287,500.
A sales price of $294,000, with the minimum FHA down payment of 2.25 percent, would result in the new maximum loan amount insured by FHA.
“Previous to this change, purchasers in the price range of about $200,000 would be limited to tougher conventional loan requirements in this area,” Joe Otillio, also of AmCor Mortgage, said.
The stimulus package is also good news for homeowners looking to refinance out of their variable rate mortgages and into a fixed rate loan.
While the legislation limits new mortgage contracts to 2008, it does not exclude the refinancing of any past mortgages. This would include homeowners who need to refinance to combine both a first mortgage and a second mortgage.
“Which means that, if borrowers qualify, they can take advantage of the new loan limits no matter how many years have passed since they obtained their mortgage – as long as they get it done before the end of 2008,” Joe Otillio said. “These changes, combined with the flexible FHA credit guidelines, should assist many of those who need to refinance out of adjustable rate mortgages as well as create more approved homebuyers.”
Be the first to comment