Housing & Economic Recovery Act of 2008

On July 30, 2008, President Bush signed into law the "Housing and Economic Recovery Act of 2008," which created a new, temporary, $7,500 tax credit to provide an incentive for first-time home buyers. The credit will be available for the purchase of principal residences on or after April 9, 2008 and before July 1, 2009.

The legislation also made permanent the conforming loan limits that were increased as part of the Economic Stimulus Act earlier this year. In an area like New Jersey where home prices are higher, increased loan limits will help more New Jersey residents enter the real estate market. It will also help more people refinance into less expensive, more secure loans. The legislation took effect immediately upon enactment, but the loan limits will not go into effect until the December 31, 2008 expiration of the Economic Stimulus Act limits.

Read NJAR®'s fact sheet, which includes a more detailed background of the legislation, the provisions of the law, and learn more about how the law will affect homeowners, first-time home buyers and others.

PLEASE NOTE: THIS INFORMATION IS ACCURATE BASED ON INFORMATION AVAILABLE AS OF JULY 30, 2008. AS WITH ANY TAX LAW CHANGE, CHECK WITH A TAX ADVISOR IF THERE ARE QUESTIONS ABOUT USING THIS PROVISION.

For more information regarding the first-time home buyer tax credit, view a quick facts chart or download the Q&A.

This legislation also provides more options for U.S. veterans as it temporarily increases the loan limits of the Veterans' Home Loan Guarantee Program through December 31, 2008 to the same level as the Economic Stimulus Act limits.