The Stimulus Bill has passed- so now what? What exactly does it mean for home buyers? In a nutshell it means if you can afford and qualify to buy a home, do it now.

The American Recovery and Reinvestment Act of 2009, as it is called, increases the first-time home buyer credit from $7,500 to $8,000 and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years.

Additionally, it extends the expiration date for the credit from July 1 to Dec. 1. "Couple that with the current historically low interest rates and housing prices as low as the year 2002, and you have the perfect scenario for buying a home," said Joe Engle, president of LoanSmart Inc.

The tax credit is applicable for single individuals earning up to $75,000 and for married couples that earn up to $150,000 per year. Those earning higher salaries are eligible to receive a credit when they purchase a new home as well.

Under the Stimulus Bill, the conforming loan limit cap increases from $625,000 up to $729,750 and reinstates these 2008 loan limits through Dec. 31. This will allow qualified homebuyers to purchase a property using FHA financing for up to $729,750 with as little as 3½ percent down.

"Home affordability in California is at an all time high at 59 percent, according to the California Association of Realtors," said Engle. "It is the perfect storm to get the housing market moving in the right direction."

There is some great news for seniors included in the bill. Congress voted to raise the limits on reverse mortgages, which are mortgages designed specifically for seniors age 62 years and older, from $417,000 to $625,500. With these new limits, more seniors will be able to qualify and receive more of their home equity to help supplement their retirement income.

For more information about purchasing a new home under the new Stimulus Bill, call Joe Engle at (805) 915-2600 or visit www.loansmartinc.com. LoanSmart Inc. has been a vital part of the Ventura

County business community for the last six years, processing residential and commercial loans. Services include FHA, VA, conventional loans and reverse mortgages.