President Obama's economic stimulus plan has helped millions of Americans who have lost their jobs or are about to lose them. Qualified real estate investors have been helped as much as the jobless. In order to qualify for this program, there are some fundamental requirements that one should fulfill. One is to be an American citizen and hold a first position or hold an equivalent position in an occupation on a regular basis. One also needs to have a valid social security card and bank account. This helps to ensure that the investor is not just an illegal alien or a foreigner trying to Dodge the system.
Real estate investors can take advantage of the program that offers tax credits to those who buy homes. The Stimulus bill provided tax relief to buyers of rehab homes. This is a huge help for those who are having troubles paying the mortgage on their current residence. This tax credit encourages those who would not have otherwise gotten a loan for their new home. This is especially true for those who bought homes through a loan mortgage company but are now having problems meeting the repayments. It's definitely better to save than to lose your house.
The EFRBS (Employer Funded Retirement Benefits) is another great program that is open to home buyers. The EFRBS is designed to help pensioners who are still working after retirement. The tax-free benefits are especially important to the pensioners who need the money now more than ever. They would otherwise have had to rely on State funds or other means to fund their retirements. With the EFRBS, the home buyer will get a tax saving and will also be able to make use of the funds for his or her own qualified expenses.
The Stimulus Bill offers many other incentives for those who purchase qualified property. Mortgage lenders get some relief from State taxes when a property is purchased by a home buyer. It is the buyer who makes the major contribution towards the repayment of the mortgage. Home buyers who purchase the property on behalf of the lending company will not be liable to pay any State tax. The mortgage lender can deduct interest and fees from the loan amount which will be passed on to the buyer. So, as a home buyer you stand to benefit in a lot of ways.
A second major benefit is that the Federal funds have made housing loans available to all qualified buyers. This meant that first time home buyers could apply for a loan and if they were rejected, they did not have to give up on their dream. Even those who have had previous failures can apply if they have a viable plan to make their next venture a success. You do not have to be a millionaire before you can get the financing that will help you buy your dream home. Even those with bad credit ratings . . . . . . can get the financing that will get them into their new home.
As mentioned earlier, this all comes as a result of the stimulus package put forward by President Obama and his administration. It was never clear whether this package would succeed or fail. When economic indicators are weak, it is easy to predict a recession. However, when the Federal spending is spiced up, even experts were surprised at the response. Therefore, this stimulus has been great for everyone involved, including the buyers.