Economic Stimulus Act 2008 Signed
February 13, 2008 President Bush signed the Economic Stimulus Act of 2008 into law. The act hailed by the National Association of Realtors should give a much needed boost to the housing market. The new act raises the loan limits guaranteed by Federal Housing Administration (FHA) and government sponsored enterprises (GSE) mortgage limits in 2008. Although the limits are well below the average price of a Westchester home, many homebuyers and home owners will benefit from these raised limits. Here is how you can benefit.
If you are looking to purchase property up to $417,000, then you qualify for an FHA guaranteed home that can get you a lower interest rate. The maximum FHA loan limit has been increased to $729,750. Sellers will benefit because buyers may get better rates with these increases, allowing them to purchase previously unaffordable homes.
“We believe the economic stimulus bill that Congress sent to the president today is strong legislation that will quickly impact the nation’s families and economy,” said NAR President Richard Gaylord. “We are pleased that both the Federal Housing Administration and the Fannie Mae and Freddie Mac loan limits have been increased, even if only temporarily. This will be a major stimulus for the housing industry and for people who want to own a home.”
An economic impact study conducted by NAR earlier this month estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated, housing inventory would be reduced and home prices would be strengthened by two to three percentage points.
The deal, passed in the Senate on an 81-16 vote, includes rebate check amounts of $300 to $600 for people who have an income between $3,000 and $75,000, plus $300 per child. Couples earning up to $150,000 would get $1,200. But the plan also gives checks to more than 20 million Social Security beneficiaries and 250,000 handicapped veterans and their widows.
If you would like to find out if these loan limits can help you purchase your next home…AskRey.