Oh, oh, the picture with the suite... this must be a serious blog today... Well it is... it is good information us to know.
By now you have heard on the news about the changes in the Historic Housing Bill signed into law on the 30th of July. As a Realtor that is constantly working to improve my clients well-being these changes will help many California residents.
For years now the median price of homes in Long Beach has been greater than the conforming loan standards, which means people had to get a Jumbo Loan. This means they ended up paying a higher interest fee on their loans, as they were considered a higher risk even with good credit. This new limit will help many medium family buyers.
For those who are on the lower income front and wish to own the Second Mortgage Assistance Program through the Long Beach Housing Development Company will offer get opportunities for many of our citizens. If you are interested please call me for more information 562-505-6204
Below you will find some high-lights of the new program passed by Congress. I borrowed these words from a e-mail sent out from the President of the California Association of Realtors.
California Association of Realtors and the NATIONAL ASSOCIATION OF REALTORS® have aggressively lobbied for Congress to pass numerous provisions found in this historic bill. Many of you participated in these efforts by communicating with your Members of Congress.
The bill permanently increases the conforming loan limit to $625,500. C.A.R. has long advocated for higher conforming loan limits. In February, the Economic Stimulus Act of 2008 was signed, temporarily raising the conforming loan limit in high-cost areas to $729,750 from $417,000 until December 31, 2008.
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.
C.A.R. also supports the following bill provisions:
- A temporary increase in mortgage revenue bonds to refinance subprime mortgages.
- New regulator for Government Sponsored Enterprises to restore investor confidence in GSE loans and help the market and economy stabilize.
- First-time home buyer tax credit, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home’s purchase price, up to a maximum of $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
- Temporary raise in the loan limit for the Veterans Affairs home loan guarantee program to the same level as the economic stimulus limits until the end of 2008.
- Adjustment to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), allowing sellers to provide the non-foreign affidavit to a qualified closing entity and not just the buyer.
- The setting of minimum requirements for mortgage originators, which mandates fingerprinting of loan originators and establishes a nationwide loan originator licensing and registration system. The requirements do not apply to those only performing real estate brokerage activities unless they are compensated by a lender, mortgage broker, or other loan originator. States will have the ability to implement more stringent laws.
- The creation of a National Affordable Housing Trust Fund to help cover the cost of the FHA rescue plan for the first five years and develop affordable housing in subsequent years.
Have a great day, Jeff
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