American Houseing Rescue..How does this help YOU?

The American Housing Rescue & Foreclosure Prevention Act, was signed July 30th, 2008 and will go into effect October 1, 2008. This bill is designed to assist distressed homeowners in order to avoid foreclosure, to provide support to mortgage giants Fannie Mae and Freddie Mac and gradually stimulate the housing industry.

If your mortgage is at least 31% of your gross monthly income, your loan was issued between January 2005 and June 2007, and you occupy the residence, you may be able to obtain the FHA-backed mortgage. Several stipulations are attached to this program, so contact your lender if your interested and get to work on the process.

Jumbo Loans have been redefined! Fannie Mae and Freddie Mac now have authority to purchase loans up to $625,000, up from $417,000 for single family home. So go out and buy that dream house without the Jumbo interest rate, just keep it below $625,000.

Our Veterans will see benefits from The Housing Rescue and Foreclosure Prevention Act. Lenders are required to wait nine months before beginning any foreclosure proceedings on any homeowner returning from military services. Previously, the foreclosure waiting period was only 90 days. Lenders are also required to wait one year before increasing interest rates on mortgages of anyone returning from military service.

First-time home buyers purchasing a primary residence will receive a refundable tax credit that functions like an interest-free loan of up to $7,500 or 10 percent of the purchase price of the home, whichever is smaller. Limits apply based on gross income and it's required that the "credit" is paid back over the next 15 years. The tax credit is retroactive to home purchases on April 9, 2008, and expires on July 1, 2009.

A nationwide loan originator licensing and registration system will set minimum standards for loan originator licensing that will improve the oversigt of mortgage brokers and bank loan officers. We can also expect improved mortagage disclosures that will help ensure that borrowers understand their mortgage loan terms.

I hope this has helped shed some light on our American Housing Rescue and Foreclosure Prevention Act. If this act can help you, please contact your mortgage, tax or legal professional for all of the details and explanations.