Regardless of what you think of the $1 Trillion “Stimulus” Bill which President Obama is expected to sign in Denver on Tuesday, you might be interested in the real estate related provisions contained within it. Here are the highlights:
1) Jumbo loan limits will be raised to $727,000 in high cost areas.
2) An $8,000 tax credit will allowed for qualified real estate purchases. This is less than the $15,000 first proposed but it is a true credit and not a government backed loan which had also been discussed.
3) There is over $50 Billion set aside for foreclosure mitigation.
In addition to the above, the existing mortgage interest rate deductibility and capital gains exclusions of $250,000 (for singles) and $500,000 (for couples filing jointly) will remain unchanged.
The Bill was passed on a Friday afternoon prior to a holiday weekend having just been completed at 11pm the night before, allowing little time for Congressional Republicans, the Press, or most importantly – We The People to review it prior to passage.
Joe Biden stated “If we do everything right, if we do it with absolute certainty, there’s still a 30 percent chance we’re going to get it wrong”.
So, did they do it right? And if not, what effect do you suppose that will have on the odds he gave?