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