Historic housing legislation that is set to help revitalize the real estate markets has become law. This far- reaching legislation will help homebuyers in many ways. For example, starting October 1, distressed homeowners will have the ability to refinance into fixed rate FHA mortgages and present lenders who hold the mortgages will be encouraged to write down the principal balance to 90% of the current value of the home. Details regarding the program procedures are expected to be released shortly.
In addition, the legislation permanently increases conforming and FHA loan limits, increases VA loan limits temporarily until the end of the year and adds a tax credit for first time buyers.
Not all news was positive. Seller-funded downpayment assistance programs will no longer be allowed by FHA and the downpayment required for FHA mortgages will be increased shortly. Therefore, anyone considering purchasing who needs assistance for the downpayment is suggested to act quickly because the ban will also be implemented by October 1st, 2008.
See you next time on the corner
Loading ...
Leave a Reply