Thursday, August 14, 2008

HR 3221 Bill Provisions - Finally here!

FHA changes - no more down payment assistance programs allowed after Sept. 30th 2008. The FHA minimum down payment is increasing to 3.5% from 3%. First-time buyers will be eligible for a $7,500 tax credit if they purchased a home on or after 4/9/2008 or if they purchase one before July 1, 2009. There are income limitations to this. Call me for details. Conforming Jumbo loan limits will decrease from $729,750 to $625,500 as of Jan. 1, 2009.
Conforming loans will remain at $417,000 or below. This bill will help homeowners who are upside down on their homes, but the mortgages must have been originated prior to Jan. 1, 2008. Criteria is: 1) Borrower must not have defaulted intentionally and 2) Borrower must have had a debt-to-income ratio over 31% as of March 2008. The Lienholder will work with borrower to write down the mortgage to no more than 90% of the appraised value. There are some stipulations however, so call me to find out. They are going to instill a SAFE Mortgage Licensing Act, which will be a nationwide licensing and registry system.

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