Who Is Eligible for the Stimulus Package – The Real Estate Angle

By Brandon Cornett | 3/10/09
© 2011, All rights reserved

Who is eligible for the stimulus package and where do we go for help? This is a common question among home buyers and homeowners across the U.S. right now, and it’s easy to understand why. There have been a lot of plans, programs and acronyms announced in recent weeks, and most of them fall under the umbrella of the stimulus package — which has become sort of a catch-all phrase.

So in this article, I’ve created an “eligibility list” to explain the various programs being offered under the stimulus package, and who is eligible for those programs. In fact, let’s open things up and talk about all of the financial programs rolled out over the last six weeks, particularly those that apply to home buyers and homeowners.

Are Your Eligible for These…

First-Time Home Buyer Tax Credit — Many people assume they are not eligible for this tax credit (up to $8,000) because they aren’t a first-time buyer. But the eligibility is wider than you might think. Under the guidelines of this stimulus package item, you are eligible as long as you have not owned a home as a primary residence within the last three years. Additionally, you must purchase a home between January 1 and November 30 of 2009. You can learn more from this IRS news release.

Mortgage Modification Help — The modification and refinance programs are technically not part of the stimulus package. But they are often rolled under that umbrella, so I’ve included them on the list. If you meet the definition of “at-risk homeowner,” and your mortgage was originated before January 2009, you might qualify for the new mortgage modification program. Additionally, the current unpaid principal of your home loan must be less than $729,750. To find out if you are eligible for this program, you’ll need to contact your current lender.

Mortgage Refinance Assistance — Like the modification program mentioned above, this is part of the recently launched Homeowner Affordability and Stability Plan. The refinancing side of this plan is designed to help homeowners who are current on their mortgage payments, but unable to refinance because of a drop in property values. Your loan must currently be owned by Fannie Mae or Freddie Mac, and you cannot be underwater (owing more than your home is worth) by more than 5%. Contact your current lender to see if you are eligible for this option.

I will update this list as new programs and guidelines become available.