In order to take advantage of higher loan limit and $8,000 Tax Credit you have to purchase a home by the end of this year.
Congress approved a $790 billion economic stimulus bill that includes a modest expansion of a first-time homebuyer tax credit and restores to $729,750 the upper loan limit in high-cost areas for Fannie Mae, Freddie Mac and FHA loan guarantee programs.
The compromise bill increases the $7,500 limit on an existing tax credit for first-time homebuyers to $8,000, extends its sunset from July 1 to Dec. 1, and eliminates a requirement to repay the credit (unless a home is resold within three years).
The loan limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs, which were bumped back down to $625,500 in high-cost areas on Jan. 1, were restored to the temporary $729,750 approved by Congress a year ago in the Economic Stimulus Act of 2008.
The $729,750 limit expired on Jan. 1, and Fannie, Freddie and FHA are currently permitted to guarantee loans of up to 115 percent of the median home price in high-cost markets, with a cap of $625,500 (that’s 150 percent of the $417,000 conforming loan limit). HR 1 will restore the limit to 125 percent of median home price in high cost markets, up to $729,750, for the remainder of 2009.
If you own more than your home is worth, you need to modify your loan in order to lower your monthly payment. The loan modification industry is now flooded with inexperience individuals who charge home owners various fees upfront and don't guarantee any results. DON'T PAY A PENNY UPFRONT UNTIL YOU SEE YOUR MODIFICATION RESULTS. Call me for details.
There has never been a better time to buy Real Estate, or Refinance you existing loan. Rates are at historic low. Contact me today.