How the Housing and Economic Recovery Act Will Put Money in Your Pocket
July 30th, 2008 categories: Real Estate News
Today President Bush signed the “Housing and Economic Recovery Act of 2008.” So, you ask? What’s in it for me? Well, let’s see. There are several provisions in the bill that can affect anyone, not just someone facing foreclosure.
Raising of the Conforming Loan Limit to $625,000
What? It’s not $729,750? That’s right. That was just temporary. Although it would have been nice to see the permanent conforming loan limit raised to this temporary amount, it’s safe to say that $625,000 is wonderful. How does this affect you? Well, for starters, if you are indeed a homeowner in the San Francisco Bay Area, this can affect you immensely. The fact that the loan limit will now permanently be $625,000 brings a larger pool of potential buyers for properties that are more than $650,000. We know that, in San Francisco, $650,000 can maybe buy you a small, decent, one-bedroom condo in a desirable area. While this is good for the buyer, of course, it also means that there will be more buyers which means that the demand will increase. If you are a homeowner, you can expect to see your property value increase due to the increase in qualified buyers.
First-Time Home Buyer Tax Credit
First time home buyers will receive a tax refund worth up to 10% of a their home’s purchase price, up to $7,500. The refund is an interest free loan. The homeowner is required to repay it in equal installments over a period of 15 years.
Homeowners in Trouble Will be Allowed to Refinance with a FHA Backed Loan
If you are facing trouble because your home is worth less than what you payed for it, your interest rate is increasing, and you cannot refinance, take notice. You will be able to refinance your loan into an FHA loan which will save you from losing your home, or having to find ways to pay the high payments which would probably result in foreclosure anyway.
There are several provisions that are included in this bill. You can see a summary of all of the components of this historic bill on the website of the senate.
| Discussion:
You can leave a response, or trackback from your own site.
Good info Melissa. I didn’t realize myself that the conforming loan limits are actually going to be $625,000 instead of the $729,750. Keep up the good work!
[…] has been a hot item of news since it was signed by the President in late July. There are several key provisions of the bill that will effect sellers and buyers […]