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Is H.R. 5140 Relevant for Orange County Real Estate?

By
Real Estate Agent with TNG Real Estate Consultants

One of the Big Items today flowing through the grapevine is the Economic Stimulus Package, a.k.a. H.R. 5140.  One of the tasty beni's coming our way is a one-time check for anywhere from $600 to $1200 in the form of an income tax rebate, distributed to 130-million Americans and could be mailed as early as May or June.  The whole idea is for American consumers to spend the money to help jump-start our snail's pace economy.  The bill was signed by President Bush this past week (White House Article).  Another exciting component of the H.R. 5140 is the raising of FHA conforming loan limits in "high-cost" areas.  The definition of "high-cost areas" has not been published, but the calculation for now is 125% of the median home price, not to exceed 175% of the median home price for a specific metropolitan area.  For example, in order to reach the proposed limit of $729,750 the median sales price in your metropolitan area has to be $583,800.  The new loan limits for FHA will not be immediately known, since the Secretary of Housing and Urban Development (HUD) has 30 days to post the results (so expect mid-March).

 For more information on H.R. 5140 click on one of the following links:

 1.  OpenCongress

2.  Library of Congress Definition

 3.  H.R. 5140 Bill Tracker

4.  Quicken Loans Info on H.R. 5140

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