FIRST TIME HOMEBUYER TAX CREDIT

Obama's new stimulus plan will enable first time homebuyers buying a home between January 1st and December 1st to receive a tax credit of 10% of the home's value up to $8000 max. To qualify as a "first time homebuyer" you can not have owned a home in the previous 3 years. If the home purchased is sold within 3 years, the credit would have to be repaid; otherwise, it is a gift. Lastly, the credit is applied to taxes you owe. If your credit is larger than your tax bill, then your credit will come to you as a refund.

OBAMA’S HOUSING PLAN

What if I am behind or having trouble paying my mortgage?

You may qualify for a loan modification (only on your 1st lien) IF the home is your primary residence, your payment is more than 31% of your gross monthly income and if you loan is within current Fannie/Freddie limits.

What if I am not close to foreclosing, but am struggling?

You may be eligible to refinance into a fixed loan IF the loan is held by Fannie/Freddie and IF you owe less than 105% of the home's current value on your 1st mortgage.

What are other ways I can get some relief?

If you make some "green" changes to your home, you can get back 30% of expenses up to $1500
(Source: The Virginian-Pilot )