House Appropriations Committee Approves Bill That Would Extend Increased Mortgage Loan Limits

On Friday July 17, 2009 The House Appropriations Committee approved the Housing and Urban development budget for 2010. (Making appropriations for the Departments of Transportation, and Housing and Urban Development - see pages 143-146 - You can read the entire 162 pages if you need a sleeping pill) The bill, if approved, would extend the temporary $729,750 loans limits for Fannia Mae, Fred Mc and the Federal Housing Administration (FHA) available in high cost housing markets though September 2010. The maximum loan amount varies from state to state and county to county. To determine the maximum loan available in your area view this link. Area Maximum Loan Amounts.

The bill also increases the lending and guarantee authority of FHA  from $315 billion to $400 billion in single family loans during fiscal year 2010. This is important because FHA loans have risen in the past few years from less than 10% of mortgage loans to almost 40% of mortgage loans and if higher limits were not enacted this important source of mortgage financing could dry up.

I wrote last month about legislation proposed by Johnny Isakson, R-Ga that would expand the current $8,000 tax credit for first time homebuyers. The legislation would also extend the tax credit which currently expires on December 1, 2009 to one year from the date of enactment and would allow homebuyers to claim the credit on their 2009 tax return for purchases made in 2010. I haven't seen anything in the news or on Sen. Issacon's web site showing any progress has been made in getting the proposal passed. I'll let you know if I hear anything new.

First-time homebuyers are running out of time to take advantage of the current $8,000 tax credit. The current credit expires on November 30, 2009. Because of the time it takes to find a home, arrange for financing and go to settlement people wanting to take advantage of the credit need to be looking for homes now.

Call me with any questions you have concerning the current market.

To keep up with the trends in interest rates you can visit my Daily Market Report at www.mtg-info.net/DailyMarketReport.

I am always available to answer any questions you have concerning interest rates or mortgage loans.

Whether your looking to buy or refinance, call me today. I'm here to help. The best place to reach me is at my home office 301.353.9360. You can also email me at mtginfo@aol.com

Alan Gross
Home Office: 301.353.9360
Email: mtginfo@aol.com
Web: www.mtg-info.net