The Real Estate Deal

Editor Cindy Zetts dishes on real-estate and development around Puget Sound: She lived in apartments, townhomes and houses -- a dozen of them in four states -- before settling in the Seattle area in 1997. After taking a bath on the sale of her first home, in South Florida, she vowed to wise up about real estate. She bought a house in Covington 10 years ago because, well, she could afford one there.

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July 28, 2008 5:10 PM

Real-estate help: Housing bill passes Congress

Posted by Cindy Zetts

The Senate passed the housing-assistance bill Saturday, and here's a quick look at the highlights, some outlined by Sen. Patty Murray in an e-mail to John L. Scott CEO Lennox Scott, who worked with Murray and the National Association of Realtors on the bill:

-- Refundable first-time homebuyer credit: First-time homebuyers could receive a tax credit of up to $7,500. The credit applies to homes bought starting April 9, 2008, until July 1, 2009.

-- Standard deduction for property taxes: Single-filing homeowners who claim the standard deduction could deduct up to $500 for state and local property taxes for 2008. Joint filers could deduct an extra $1,000.

-- Money for FHA loans: The bill would provide $300 billion for the FHA to back loans, which could help 400,000 homeowners refinance into more affordable mortgages. It also would raise FHA loan limits, bringing them more in line with home values.

-- Raising conforming loan limits: Fannie Mae and Freddie Mac would raise loan limits in high-cost areas from $417,000 to $625,000. The limit will be adjusted for inflation.

-- Temporary increase in mortgage revenue bonds: States could issue an additional $11 billion in tax-exempt housing bonds to provide loans for first-time homebuyers.

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