I find myself reminding first time homebuyers of two very significant legislative changes that take a buyer's market to a whole new level.

The Tax Policy.

The Housing and Economic Recovery Act of 2008 makes a $7500 first-time home buyers tax credit available for ANY purchase that qualifies between August 2008, and June 30, 2009. The way this credit works is more like an interest-free loan. It's repayable over 15 years. Talk about an incentive to get buyers off the fence! If you've been looking for a reason to buy, this would be it!

FHA Reforms.

The Housing and Economic Recovery Act of 2008 also does the long over deed of permanently increasing FHA/conforming loan limits to $625,500 in Los Angeles. One important note is that the National Association of Realtors (NAR) has a stimulus plan that includes addressing things such as the elimination of the repayment requirement on the first time homebuyer tax credit, expanding the credit to all primary residence (not just first time purchases), and getting the Treasury relief program on track by targeting more monies for mortgage relief.

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