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
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