Housing Stimulus Package

Illinois REALTORS applaud passage of housing stimulus package. Yet this week President Bush is expected to sign REALTOR-supported H.R. 3221, the "Housing and Economic Recovery Act of 2008,” which includes:

• $7,500 first-time homebuyer tax credit. The credit that would be available for any qualified purchase between April 8, 2008 and June 30, 2009, repayable over 15 years. This provision will be effective immediately and is intended to convert those "just looking" into buyers.
• GSE reform. Independent regulator for Fannie Mae and Freddie Mac and permanent conforming loan limits up to the greater of $417,000 or 115 percent of the local area median home price, capped at $625,500.
• FHA reform. Permanent FHA loan limits at the greater of $271,050 or 115 percent of local area median home price, capped at $625,500.
• FHA foreclosure rescue. A refinance program for homebuyers with problematic subprime loans.

Source: IAR Weekly Connection