Get To Know The New Housing Bill
The White House has approved a law that will provide homeowners relief from the housing crisis. The Economic and Housing Recovery Act of 2008 will help troubled homeowners keep their homes and allow more people to have access to decent and affordable housing.
Signed by the president in July 30 the housing bill may be the most significant housing bill in the last decade. It will help homeowners avoid losing their homes due to difficult mortgage payments. It also gives them the opportunity to switch to more affordable mortgages.
The following are included in the housing bill:
Refinancing to cheaper more affordable fixedrate mortgages through the Federal Housing Administration FHA
300billion guarantee for subprime mortgage borrowers courtesy of the FHA
Strengthen regulations and infuse billions of dollars to mortgage giants FNM and FRE
Place Fannie Mae and Freddie Mac under the conservatorship of the Federal Housing Finance Agency FHFA
Up to 7500 refundable tax credit for firsttime homebuyers
Increases the FHA loan limit to 625000
FHA loans will have a required 3.5 percent downpayment
Prohibits sellerfunded downpayment assistance
Allows downpayment assistance from family members
A 3.9billion budget aimed at repairing abandoned and foreclosed properties in several communities
15 billion in tax cuts
Foreclosure counseling grants amounting to 180 million
Countering foreclosures is an important aspect of this bill. It also ensures that borrowers receive protection from banks that won’t permit switching to cheaper mortgages. They are required to take a loss when you refinancelosses that are easier to shoulder than long and costly foreclosure procedures. However you need to prove that you are spending more than 31 percent of your monthly income on mortgage and that you have the ability to pay for the new loan.
Housing Assistance Network http://new.housingassistancenetwork.com is a site that aims to help those who are in the low to moderate income brackets find financial assistance for housing help in acquiring a new home or grant programs from both state and nongovernment institutions.
Article source: http://new.housingassistancenetwork.com/posts/view/worriedaboutlosingyourhomethenewhousingbillcanrelieveyourconcerns
About the writer: Freelance writer parttime photographer and editor.
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