President Bush on Wednesday signed into law a sweeping housing bill that aims to boost the struggling housing market and bolster mortgage finance giants Fannie Mae and Freddie Mac. The Senate voted 72-13 in favor of the bill on Saturday, after the House passed it three days earlier.
- The cost of the program - which would begin on Oct. 1 and be in place for just a few years - will be funded by fees from Fannie and Freddie, along with fees paid by both lenders and borrowers
- The law authorizes FHA to insure up to 300 billion in loans.
- A permanent increase in "conforming loan" limits. The law will permanently increase the cap on the size of mortgages guaranteed by Fannie and Freddie to a maximum of $625, 500 from $417,000
- The FHA maximum loan limits for high-cost areas would also increase to a maximum of $625,500. Higher loan limits will make it easier for borrowers to get mortgages, because those mortgages are more likely to be traded if they are considered conforming.
Contact Complete Mortgage Licensing, Inc.
for more detailed information on loan limits in your area @ 866-795-5807
- A new home-buyer credit. The new law includes a tax refund for the first time home buyers worth up to 10% of a home's purchase price but no more than $7500
- A new affordable housing trust fund. The law establishes a permanent fund to promote affordable housing. The fund will be paid for by fees from Fannie and Freddie.
-
Grants to states to buy foreclosed properties. The law grants $4 billion to states to buy up and rehabilitate foreclosed properties.
- Fannie and Freddie guarantee the purchase and trade of mortgages and own or back to $5.2 trillion in mortgages.
Comments (3)Subscribe to CommentsComment