Update: $7500Tax Credit is turning into a gift from Uncle Sam. This is a significant piece of regulation to boost the housing market, which has been signed into law by the president, clearly now is a time to consider buying, Ann Arbor Real Estate. Usually the bottom hits when properties at the low end of the market start moving. In this bill there are several initiatives to do just that. When first time buyers enter the market, everything else moves up the ladder. This bill will now encourage lenders to make loans, which in my opinion has been the single most important reason for the slow recovery, the availability of credit. Many, many deals in the last few months have fallen apart because borrowers, even really good borrowers with excellent credit, etc, could not get loans.
Look at the first time homeowner benefits, this is really big. Prices in Ann Arbor Real Estate have not been this good for years in most prices ranges. Be smart, and look now, while the best bargain properties are available with less competition. Most lenders and appraisers agree that values in many cases are below rebuilt costs.
Call our team, if you’re interested in Ann Arbor Michigan Real Estate or come to our
First Time Home Buyer Seminar on:
Feb 10th at 6:30 PM.
Call Vicki at 734-216-2172 for details.
Provisions of Housing-Mortgage Relief bill signed into law
Gives the Federal Housing Administration $300 billion in new lending authority and relaxes standards to provide affordable, fixed-rate mortgages to an estimated 400,000 debt-ridden homeowners. Any losses would be covered by an affordable housing fund financed by Fannie Mae and Freddie Mac, the government-sponsored companies that finance mortgages.
Allows the Treasury Department temporary authority to lend money to Fannie and Freddie or buy their stock to avert a collapse of one or both of the mortgage giants. The authority would expire on Dec. 31, 2009.
Creates a new regulator and tightens controls on Fannie and Freddie, including power for the regulator to approve pay packages for company executives. Creates a new affordable housing fund drawn from their profits. Permanently raises the limit on the loans they may buy to $625,000 in the highest-cost areas. Allows them to buy loans 15 percent higher than the median home price in certain cities.
Provides $3.9 billion in grants to the hardest-hit communities for buying and fixing up foreclosed property.
Modernizes the FHA and allows it to back loans for riskier borrowers. Permanently increases the size of loans the agency may insure - currently set to revert to $362,790 by the end of the year - to $625,000 in the highest-cost areas. The agency could insure loans 15 percent higher than the median home price in certain cities.
Forbids the FHA from insuring mortgages in which the borrower's down payment is paid by the seller, beginning on Oct. 1, 2008. Places a one-year moratorium forbidding the agency from charging premiums based on the riskiness of the homeowner, until Oct. 1, 2009.
Provides $15 billion in housing tax breaks, including for low-income housing. Gives a credit of up to $7,500 for first-time home buyers who purchase residences between April 9, 2008, and July 1, 2009. Allows people who don't itemize their taxes to claim a $500-$1,000 deduction on their 2008 property taxes.
Gives states an 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.
Offers protection from investor lawsuits for mortgage holders that modify loans to borrowers who are in default or about to default.
