New Homebuyer's Tax Credit Extension Passes Congress

The US House of Representatives

The new homebuyer’s tax credit extension that we have discussed extensively in the past week was passed by the House of Representatives today. Now that the bill has been passed by Congress, it will go to President Obama for his signature. The bill passed by a vote of 403-12 after it unanimously passed in the Senate. The bill is expected to be signed into law by the President tomorrow.

For more posts on this topic, please see:

Breaking News: Deal Announced to Extend New Homebuyer’s Tax Credit Through April 2010

Reflecting on the Impact of an Extended Tax Credit

Appropriations Bill to Extend Reverse Mortgage Limits Up for Vote in House and Senate

An appropriations bill has been proposed that will extend the FHA reverse mortgage limits until the end of 2010. The current limit of $625,500 is currently set to expire at the end of the year unless new appropriations are made. The appropriations bill still needs to pass the House of Representatives and the Senate. The extensions would also apply to Jumbo Conforming Loans and Conforming Loans, two kinds of forward or conventional mortgages.

Many in the industry appear to be hopeful that the bill will be passed before the limits expire. It is probably too early to become extremely concerned about the expiring limits, but with the bill needing to pass through both houses of Congress, it is something to keep an eye on.

House Likely to Propose a Bill to Extend the Estate Tax

The Wall Street Journal announced today that the House of Representatives is likely to propose a temporary measure to extend the estate tax, rather than allowing it to be repealed. Under a bill signed by former President George W. Bush, the estate tax will be repealed on January 1 if no action is taken. The House proposal is expected in light of the difficulty Senate Democrats and Republicans have had coming up with a permanent rate structure.

The conversations about the estate tax bill are interesting in light of recent discussions about possible ways for the proceeds from a reverse mortgage to be used as an estate planning tool. One way, using a reverse mortgage to pay for a life insurance policy in an irrevocable trust to be paid to the heirs upon the death of the borrower, was mentioned as an option in order to pass on money to heirs without having to pay taxes. Check back for more on these conversations.