PARAMOUNT MORTGAGE - LENDER'S BLOG

BREAKING NEWS: FHA Loan Limits Increased

Once they were out, but now they're back in. The economic recovery bill has raised FHA loan limits. The new limits for St. Louis and the surrounding metro area are:

One-family:	$281,250
Two-family:	$360,050
Three-Family:	$435,200
Four-family:	$540,850

First time's a charm in 2009
The $8,000 First-Time Homebuyer Tax Credit

By Amy Hoak, Market Watch

Unlike the last year's $7,500 tax credit for first-time homebuyers, the new $8,000 credit outlined in the American Recovery and Reinvestment Act of 2009 does not have to be paid back.

Want your money this year? The credit can be claimed on a homebuyer's 2008 or 2009 tax return. Tax returns for 2008 are due by April 15. If you've already filed, you have the option of amending your 2008 return to get the credit sooner.

"For first-time home buyers, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman, in a February 25th news release. "This important change gives qualifying home buyers cash they do not have to pay back."

The new program applies to homes purchased on or after January 1, 2009 and before December 1, 2009. Buyers can claim 10% of the purchase price, up to $8,000, or $4,000 for married individuals filing separately, according to the IRS' web site.

The credit starts to phase out for those whose adjusted gross income exceeds $75,000 ($150,000 for joint filers.) The home must be their main residence and a homeowner cannot have owned a home in the previous 36 months to qualify as a first-time homebuyer. Selling the home within three years triggers an entire recapture of the credit at the time of sale.

The IRS has posted a revised version of the form required to claim the credit, Form 5405, on IRS.gov. Visit IRS.gov's first-time home buyer page.

Paramount in the news

Paramount personnel continue to share their industry knowledge and expertise with the local St. Louis media. Executive Vice President, David Griege, was recently engaged by KSDK's TV reporter Casey Nolan as an on-air expert.  Nolan's story about the $75 billion Homeowner Affordability and Stability Plan focused on St. Louisans dangerously close to foreclosure.

The federal plan is designed to help lower mortgage payments to approximately one-third of the at-risk homeowner's monthly income and keep millions in their homes. But for financially troubled homeowners like Janice Cole, featured in the story and within days of foreclosure, time is running out.

For homeowners "who are not paying on time, and they can reduce your payments to make it easier for you, you might be eligible," offered Griege. For some, relief may arrive too late. See the entire streaming video interviews online at KSDK's web site here.

Link: First time's a charm