President Bush signed the Housing and Economic Recovery Act of 2008 today, a bill that will assist an estimated 400,000 homeowners facing foreclosure by allowing them to refinance their current mortgages with a Federal Housing Administration-backed loan. The bill also permanently increases the conforming loan limit to as high as $625,500.
“One of the biggest reasons we’ve seen a slowdown in home sales is because buyers are having difficulty obtaining mortgage funds. That’s why this bill is significant: It increases the access to affordable, stable mortgages,” said Chris Sloan, president-elect of the Utah Association of REALTORS®.
The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
Another part of the bill includes a temporary tax credit for first-time home buyers of up to $7,500 for those who purchase between April 9, 2008, and July 1, 2009. This credit is available to anyone buying their first house or anyone who has not owned in three years. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full credit. A home is eligible for the credit if it is any residence that will be used as a primary residence (single-family, townhouse, condo, etc.)
For more detailed information about the tax credit, visit www.federalhousingtaxcredit.com
About Heidi
- Heidi
- Utah County, Utah, United States
- Heidi currently works as a realtor in Utah! Heidi has had several careers that range from business owner to radio talk show host. But her first love and interest is homes. Now she is fulfilling a life long dream of being a realtor. She is friendly, honest, helpful and reliable. You can count on her to do what she says she will do! Heidi's area of expertise is primarily in the Utah County area where she has lived and raised her family for 15 years: Alpine, Highland, Cedar Hills, American Fork, Pleasant Grove, Lindon, Orem, Provo, Spanish Fork, and Payson. Heidi takes home ownership seriously and she won't pressure you to buy a home so that she can 'make a sale'! Heidi believes that a home isn't just four walls... it is where you live, learn, love, laugh and grow. It is a place for traditions and family gatherings. She will take time to get to know you and find a home to fill your wants and needs!