President Bush lifted his veto threat and the Senate passed a housing stimulus package on Wednesday. Some key provisions of the bill will affect residents of Northeast Ohio.
1. $300 million to help homeowners facing foreclosure refinance their mortgages into FHA loans. The lender would have to agree to take a loss on the original loan and lender participation is voluntary.
2. $3.9 billion in block grants to help local communities buy up (often vacant)foreclosed homes, rehab them, and resell them.
3. $15 billion in housing tax breaks, including $7,500 in tax credits to first time home buyers. This provision applies only to buyers who purchase between April 9th 2008 and July 1st 2009. The full tax credit is available only to homeowners making less than $75,000 (or couples earning less than $150,000). The tax credit must be paid back, interest-free, over the next 15 years.
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