The National Association of Realtors has lobbyed for the $8,000 First Time Homebuyer Tax Credit program, which ends in a few short weeks to be extended. At the same time NAR are calling for the new generous FHA Loan Limits to remain in place for the time being rather than expiring in a few months.

Current FHA loan limits are as high as $729,750 in high cost areas, and are set to expire at the end of the year and revert to lower amounts. After all, FHA backed loans are forming the backbone of the lending market at the moment so everyone is watching with a close eye.

According to NAR: “Making the current FHA loan limits permanent would ensure liquidity in the housing market and make mortgages more affordable for qualified buyers at a time when the market is showing signs of a fragile recovery…”

Also, The First Time Homebuyer credit, of course is set to expire on November 30th, which NAR believes should be continued into 2010, that every home purchase pumps into the recovering economy about $63,000 – the equivalent, they say of adding one new job to the employment figures. They also say that “the 355,000 to 400,000 transactions directly attributable to the credit made a significant dent in the housing inventory and will help to stabilize home prices.”

If Congress does not take NAR’s recommendations then there is little time before these programs under their existing terms can continue. Contact us today for help in buying a home in the area to still be eligible for the programs.

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