So I posted this earlier today, but only a couple of people looked at it... I think it got lost in the mid-day noise that is Active Rain sometimes.

I am posting it again, because this is one of the most important things to happen in our industry for quite a long time... and one of the most positive.  What does President Bush passing this bill actually mean to you and your clients? (an abbreviation)

* GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008). View 2009 FHA and GSE loan limit estimates (PDF)

* FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008). View 2009 FHA and GSE loan limit estimates (PDF) FHA Reform Chart (PDF)

* Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan). First-time homebuyer tax credit chart  & Frequently asked questions about the first-time homebuyer tax credit

* FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008. FHA Foreclosure Rescue Chart

This is really important stuff that you need to know and pass onto your clients!  Follow this link to the NAR Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)

Matt Dollinger

@properties