Finally we have some help for the troubled housing market. A law passed by the federal government and is one of the boldest and broadest pieces of legislation related to the real estate market since the great depression.
Among other relief details, the legislation devotes $300 billion to helping troubled homeowners avoid foreclosure.
Key provisions of the Housing and Economic Recovery Act of 2008
• A tax credit of up to $7,500 for qualifying first-time home buyers (repayable and interest-free over 15 years).
• An increase in loan limits for Fannie Mae, Freddie Mac, and FHA up to $625,500 with local limits set at 115% of the area median.
• A foreclosure rescue plan in which lenders would refinance homeowners with subprime and ARM reset loans into fixed-rate, 30-year mortgages backed by the Federal Housing Administration.
• A change in existing legislation that will eliminate seller-paid down payment assistance programs such as Nehemiah and the HART programs. • New requirements for mortgage originators.
• A bailout plan for government-sponsored loan companies Fannie Mae and Freddie Mac, if it is needed.
• A grant of $3.9 billion in grants to the hardest hit communities for buying and fixing foreclosed property.
• $180 million for pre-foreclosure counseling and legal services for distressed borrowers
Additionally, states will receive and additional $11 billion in tax free municipal bond authority for low interest loans to first time home buyers, construction of low income rental housing and refinancing subprime mortgages.
If you want to know how this new law may help you, please call (951) 454-3805. We'd love to offer you some free information.