Well George Bush signed the "Housing and Economic Recovery Act of 2008" on July 30th, so what does this mean for you?
1.If you are in MN the new conforming loan limit of $625,500 does not apply. We are still capped at $417,000 if you want conforming loan rates that will be backed by Fannie Mae and Freddie Mac.
2. In the metro area the FHA loan limit for 1-unit residences will be $335,800. The limit is $271,050 throughout the rest of MN.
3. If you are a new home buyer: You can qualify for a tax-credit up to $7500 if you purchase(d) a home between April 9,2008 and June 30, 2009. The credit is repayable over 15 years (basically making it an interest free loan)
4. FHA Foreclosure Rescue: If you have a problematic subprime loan and your lender agrees, you could qualify to have your loan balance reduced to 90% of your current appraised value. You would then have a new 30 year fixed FHA loan. Any equity built after this modification would be split 50/50 with the lender.
5. Seller-funded downpayment assistance programs: (ex. Nehemiah) Are prohibited starting October 1st, 2008. You still can get downpayment assistance from nonprofits or other sources such as churches, employers, or family members
6. Minimum FHA down payment: Will be increased from 3% to 3.5% of the purchase price starting January 1, 2009
These are the main items that may have a direct effect on your next home purchase. If you have any questions or would like additional information feel free to contact me.
Tuesday, August 5, 2008
Subscribe to:
Posts (Atom)
