A few months ago it seemed as if homes in the $180k-260k price range were < $150 sq ft. Now some of these homes, located in quiet neighborhoods w/desirable schools, are going for > $150 sq ft. Here’s a good example.

Even at asking price, 3% FHA down payment for this home is only about $6500. Obama’s first time buyer tax credit is $8000. If you can come up with the down payment, you will receive most of it back from the IRS within several months of close.

Or, if you have saved up enough for the down payment and don’t have to borrow from friends or family, the credit can be applied to the loan or to remodeling the house in 2010 (what is this going to do for the remodeling industry in 2010?).

Some additional details regarding the credit:

* You need to buy the home prior to December 1, 2009.
* You need to stay in the home for at least three years.
* The credit is for 10% of the purchase price. Most people will be able to claim the full $8k.
* The credit begins to phase out for single filers w/gross AGI > $75k and joint filers w/AGI > $150k.
* The credit comes in the form of a CHECK from the IRS. You simply need to amend your 2008 return.

Popularity: 38% [?]

What does it mean for Eugene home buyers and sellers?

Here’s a quick assessment:

• The current FHA-backed loan limit is $260,839. NAR predicts that as a result of the stimulus package, this will grow to approximately $343,209.
• The GSE limit will remain at $417,000. Contrary to new reports stating that Jumbo loans will suddenly be available at the conforming (lower) interest rate, that’s simply not the case for most of Oregon. NAR predicts however that Jumbo limits will rise slightly for Jackson and Deschutes Counties.
• HUD will post the actual limits on or before March 14, 2008.
• These new limits will expire on December 31, 2008.

Popularity: 36% [?]