All buyers get stimulus money

It looks very likely that congress is going to give us an especially great treat this year to help ward off a stall in the housing markets….
Senate negotiators have reached an agreement to an extension of the home buyer tax credit with a BIG BONUS I wasn’t expecting. They are going to extend it to everyone, not just first time buyers. While it isn’t law yet, every indication is that it will be shortly. That ought to keep Minneapolis a red hot market through the winter months. Both the full House and Senate have to vote approval before this will become law.
“Under the compromise reached late today, the $8,000 tax credit extension would cover first-time home buyers who sign a contract for a home by the end of April and close by the end of June. At the same time, it also creates a $6,500 tax credit for those who buy a home, but have owned a home for at least five consecutive years out of the past eight years.
Finally, under the $8,000 tax credit extension, the income limit would be raised to $125,000 a year for individuals and $225,000 for married couples. The up from the current income limits are $75,000 and $150,000, respectively.”Cnn.com October 29, 2009
FHA changes in the news today:
• Minimum credit scores have been raised to 640 by some of the Nation’s largest lenders
• After November 18th, borrowers using the FHA Streamline refinance program will have to prove they are working which is a big change from the current program which is non-qualifying.
• Borrower’s who wish to purchase will have to have established credit as these same lenders will no longer allow borrowers to use non-traditional means such as utility company histories, to prove credit worthiness.
We are no longer considered a declining market by Genworth, one of the largest national private mortgage insurance companies, which is good news for those who use conventional loans with less than 20% down. Some of the other insurers are taking a wait and see approach. Minneapolis posted a 3.2% increase in home values in August, which is the fourth straight month of increases. While our unemployment rate is slightly below that of the national average, it has been inching up as of late. With a record number of new foreclosures set to hit the market in January and February, the other insurers continue to expect another decline in values in the metro area.
This Halloween is shaping up to be a wild and crazy prelude to an interesting new year. So hand out treats, and be a good sport. Things are definitely picking up. –Barb Crea
PS. This just in from Fix Housing First.
As you may know, last night the Senate reached a deal on extending and expanding the home buyer tax credit, and they plan on attaching it to the unemployment insurance bill. You can see a copy of the bill here. The tax credit provisions begin on p. 14.
Near as we can tell at this moment, the process from here will go like this:
1. There will be a cloture vote at 5 pm on Monday in the Senate on the new Baucus substitute. If it succeeds, it takes 30 hours to "ripen," i.e., before the bill can be brought to the floor.

2. Thirty hours later it's Tuesday night. There will likely then be a cloture vote on the full unemployment insurance bill, as amended.

3. Thirty hours after that, it's Thursday morning, when the Senate will vote on final passage of the bill.
4. The House could take up the bill as early as Thursday afternoon or Friday. They likely will just accept the Senate bill and vote on that. If their bill differs from the Senate bill, then the whole thing has to back through Conference. That's unlikely at this point - and undesirable.
5. The plan/hope is to have the bill on the President's desk as soon as next weekend.
This will be of great benifit to all. For homeowners who have been waiting, now is the time before prices rise more to sell your existing home and buy up. The $8000.00 will help off set and you can buy more house for less. Don't wait to long. Call Madonna now, 651-270-2939.