On Wednesday July 30th, 2008, President Bush signed the Housing Rescue Bill into Law. 

The big question... What does this mean to you?  The answer is "several things".  This is a sweeping housing law.  The goal is to stabilize the housing market across the country.   Washington State has had a bit of a price slump after several years of huge gains, however the problems in the Nation's real estate market have really only dealt us a glancing blow in the grand scheme of things.  However, we will reap all of the benefits of this new law!

The primary objectives of this law are to make government-backed affordable mortgages available to homeowners at risk of foreclosure and to bolster Fannie Mae and Freddie Mac with both money and more stringent regulations.

Here are the new Law's benefits to you:

¨         If you are a homeowner, this law makes $300 Billion available to homeowners at risk of foreclosure to re-finance their mortgages with a new fixed-rate government backed FHA loan.*

¨         If you are a first-time home buyer, this law includes a tax refund up to $7,500.*

¨         If you are looking to sell your current house and buy a bigger one, this law is raising the FHA's maximum loan limits to $625,500.*

There are a couple of drawbacks for buyers as well.  Here they are:

¨         This law eliminates the programs that have allows Sellers to provide down payment assistance on FHA Loans beginning in October 2008... (Programs like "Nehemiah" will go away.)

¨         FHA loans will have a 3.5% minimum down payment. (instead of the 3% that has been required - starting in October)

Overall, I think this program will do a lot of good.  The action itself will help restore consumer confidence.  Raising the FHA cap is very helpful.  This program will help a lot of homeowners at risk of foreclosure keep their homes, and bring the foreclosure rate down.

I think eliminating the down-payment assistance programs is a terrible idea.  Those programs have helped thousands of people buy a home.  As I understand it, a Buyer getting an FHA loan needs to CLOSE on the house before October 1st, 2008 if they want the Seller's help with the down payment. 

The real estate market is on the mend.  The Government has stepped in with a big helping hand.  The election is coming soon.   A new President usually brings a good spike to the economy.  Gas prices are finally coming down. (Yey!!!)  The market has hit bottom and will soon go up!  You've heard the adage "Buy Low, Sell High."  It is time to Buy, call me today at (360) 708-2929 to get started.

 * As with any loan program, there are a lot of qualifiers, benefits, limitations and drawbacks.  Please consult your lender for the specifics of the various loan programs available.