WHAT YOU NEED TO KNOW ABOUT THE NEW BILL

By
Services for Real Estate Pros with SendOutCards

Key facts of the new housing legislation include:

For homeowners in danger of losing their homes:

·The Federal Housing Administration will insure and refinance up to $300 billion in mortgages to qualified homeowners. Existing mortgages would be canceled in favor of 30-year, fixed-rate loans for up to 90 percent of the home's current value. The program will run from Oct. 1 to Sept. 30, 2011.

·Lenders must wait nine months, not the current three months, before starting foreclosure proceedings against a returning soldier.

For home buyers:

·A $7,500 tax credit is available to buyers who have not owned a home for three years and who have modified adjusted gross income of less than $75,000 for one person or $150,000 for a married couple.

·FHA loans will require a down payment of 3.5 percent, rather than the current 3 percent.

·The maximum loan amount for FHA-insured loans will be increased to as much as $625,000, depending on the area, making FHA loans an option for more expensive properties.

·Seller-funded down payment assistance programs will no longer be allowed for FHA loans.

·Lenders must disclose to borrowers the maximum monthly payments that are possible under their loan.

Online:

For more information on the bill and what it means for consumers, look to:

· www.federalhousingtaxcredit.com

·http://banking.senate.gov/public/_files/Hous ingandEconomicRecoveryActSummary3.pdf

·http://www.house.gov/apps/list/press/finan cialsvcs_dem/hr3221_bill_text.pdf

 

 

Comments (6)

Carole Lhuillier
Keller Williams Realty SunCoast - Saint Pete Beach, FL
Our Home Team SunCoast

Thanks for the information on the new housing bill.  See that you are in the Snellville area.  If you have any clients who are looking for property in metro Atlanta, send them our way.  Obviously we will honor a healthy referral fee for your efforts.  Best of luck in growing your real estate business.

Carole

 

Jul 31, 2008 03:22 AM
Kathy Blome
Saint Augustine, FL
Homes For Sale - Real Estate - Wesley Chapel, Pasc

This is great news for people facing foreclosure or short sales, but what loans are going to qualify for refiancing?

Jul 31, 2008 03:25 AM
Veronica DeCarolis
Weidel Realtors - Flemington, NJ

Thanks for writing. I blogged on this yesterday too.  Have a great day.  Veronica

Jul 31, 2008 03:29 AM
Visions Home Staging, Furnishings & Design
Visions Home Staging, Furnishings & Design - Walnut Creek, CA
We See Your Homes Potiential

very informative blog. Thank you!

Jul 31, 2008 03:41 AM
Randall Schrader
Competitive Insurance of Dundee - Dundee, FL

They should give the $7,500 credit at closing.  The buyers will wait till they can get closer to the credit they need.

Jul 31, 2008 03:53 AM
Alice Smith
American Acceptance Mortgage, Inc - Fort Oglethorpe, GA
Mortgage Loan Officer TN GA AL

Homebuyers need to understand the $7500 tax credit has to be repaid.  It is an interest-free loan that must be repaid over a 15 year period.  I am sure a lien will be on their property which would have to be paid in full if they refinance or sell.

Jul 31, 2008 05:24 AM

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