• Individuals earning $75,000 or less per year or married couples earning $150,000 or less
• The home must be used as a primary residence, not as a vacation or leased residence
• The buyers must be first-time buyers, meaning they have not purchased property in the last two years
• The home must be purchased by December 1, 2009 (although later amendments increased the date to the end of April 2010)

The credit was issued on the 2010 tax return (claimed on Form 5405), with a refund issued if the credit exceeded the homeowner’s tax liability.  Unless the homeowner moves from the house in the next three years, the credit does not have to be paid back.

At the same time as the Home Stimulus Credit, existing homeowners were able to take advantage of the Making Home Affordable program.  This offered residents the option of refinancing their homes and negotiating with lenders in order to avoid foreclosure.   The qualifications for this program are as follows:

• The home must be the primary place of residence for the individual
• The home’s value cannot exceed $729,750

A debt counselor might provide information on additional qualifications, and can work with the individual to take advantage of the best new options.  More detailed information is available on government sites like the Internal Revenue Service, MakingHomeAffordable.gov, and the US Treasury website.  Home lenders can also provide more information on the program, and the best plan to fit each individual.

The Home Stimulus Credit has already moved thousands of families into new homes, but this new plan will do even more to stabilize the market and offer relief to families unable to escape the housing downturn.  Arizona, California, Florida, Michigan, and Nevada were the five states most vulnerable to foreclosures and other housing nightmares.  In addition, the Housing Finance Agencies each submitted Hardest Hit Fund proposals to the Treasury on April 16, using data from the homeowners themselves.  Each proposal was examined for compliance with the Emergency Economic Stabilization Act, and the Treasury also worked to provide performance and reporting metrics for each state.  The actual date on which the plans will be put into effect varies based on a number of factors, including the types of programs and individual state procurement procedures.

Also in June, the U.S. Department of Housing and Urban Development, in cooperation with the Department of the Treasury, developed a “scorecard” to serve as a monthly record of the national housing market.  The scorecard uses key indicators to show the impact of federal recovery efforts, such as the Home Affordable Modification program.  The first edition showed that after 30 months of decline, home prices have leveled off, and expectations suggest they will continue to rise.  More people are also taking advantage of mortgage restructuring, with the amount reaching 2.8 million Americans.  Half of the homeowners who don’t qualify for HAMP modification were involved in an alternative restructuring.

The data suggests that responsible homeowners will continue to take advantage of these generous benefits, and the housing market will continue to rise from its recent depths.

Here are some more easy ways to detect and avoid scams:

• Avoid anyone who asks for a fee in exchange for counseling or modifying a delinquent loan.
• Don’t allow the stress of meeting mortgage payments or selling your home open you up to threats.
• Be cautious if you are asked to sign papers immediately, or if you are asked to sign or transfer over the deed to your house.
• Never sign over your deed to any individual or organization unless directly advised by your mortgage company.
• Don’t make a mortgage payment to anyone except your mortgage company—again, unless directly advised by said company.
• Watch videos at the Making Home Affordable Program‘s and at the Federal Trade Commission’s sites.
• Find information at the Office of the Comptroller of the Currency’s site on how to avoid mortgage and foreclosure scams.

If you think you have already been victimized by a scam, there are a number of outlets for filing complaints.  The Federal Trade Commission takes all complaints online or at 1-877-FTC-HELP.  In addition, you can report scams to the Loan Modification Scam Prevention Network and the Financial Fraud Enforcement Task Force.  Make sure to keep the government informed so they can continue to provide assistance to homeowners and crack down on those who would take advantage of the system.

The bill does not extend the date by which buyers had to sign a purchase agreement for the home, which was April 30.  Instead, it provides relief to those who were unable to close the deal before the deadline of June 30.  According to the National Association of Realtors, this will affect from 180,000 to 200,000 homebuyers—a worthwhile number by any means.

In order to qualify for the credit, home buyers must fill out tax form 5405: “First-Time Homebuyer Credit and Repayment of the Credit”.  Buyers must also include either: a copy of the settlement statement with all appropriate signatures; a copy of the retail sales contract for mobile home purchasers, again with all appropriate signatures; a copy of a certificate of occupancy for a new home; or, for buyers qualifying for the existing home credit, proof that they lived in the house for 5 consecutive years in the last 8 years.  While this paperwork may seem overwhelming, the rewards are well worth it.  Hopefully this will encourage Congress to continue working on improving the housing situation in America, so that the hundreds of thousands of people who find themselves homeless each night will no longer have to suffer without hope.  Write to your local senators and representatives to let them know you support these initiatives.

Grants are available at the federal, state, and local levels, either directly through the government or through cooperating non-profit organizations.  Federal grants are available through Department of Housing and Urban Development programs, specifically targeted to those whose incomes keep them from qualifying for loans or making a down payment.  Options include the HOME program, the Good Neighbor Next Door program, and the American Dream Downpayment Initiative.

If you prefer to work at the state or local levels, you can still find assistance through local homeownership voucher programs, specifically targeted to lower income residents.  Although the waiting list can be long, the vouchers give assistance to those owners otherwise unable to pay their monthly mortgage.  If you’re interested in the program, the Department of Housing and Urban Development offers a list of currently available programs.

It’s important to remember that buying a home is still a large responsibility, and these grants only provide temporary assistance.  Make sure you are prepared for the continuing task of homeownership before looking into these programs.  If you are willing to make the commitment, though, these grants provide can much-needed relief and assistance.