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More Stimulus Bill News: Higher Loan Limits, First-Time Buyer Credits & More

February 12th, 2009 categories: Buying, Contra Costa, Loans / Financing, Solano, The Economy

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Details Still A Bit Sketchy, But Here’s What We’ve Learned So Far As It Relates To Housing

Though the actual bill itself hasn’t yet been made public, from what I’ve been reading in various real estate and general news outlets today, it looks like the Economic Stimulus Bill will, among other things, increase the maximum FHA and Conforming Loan Limits back to where they were in 2008.

Highlights of what I’ve cobbled together so far:

  • As I reported earlier today, the Home Buyer Tax Credit, which up until now has been essentially a 15-year interest-free loan, will become a true tax credit. But it will remain for first-time buyers only — with income limits — and will be increased from $7,500 to $8,000 (the Senate had voted for a $15,000 credit that would be good for ALL owner-occupants, not just first-time buyers).
  • Maximum loan limits for Freddie Mac/Fannie Mae and FHA loans will apparently return to what they were last year (the actual amounts haven’t been confirmed, so what’s shown here is based on the ‘word on the street’).’ In Solano County, Fannie/Freddie loans were $557,500 a year ago and are now $417,000. In Contra Costa, they were reduced from $729,750 in ‘08 to $625,500 this year. The FHA limits are $400,200 in Solano and $625,50o in Contra Costa County (same as the conforming limit). If the limits are returned to their previous ceilings, it would be easier for buyers of higher-priced homes to obtain mortgage financing.
  • Local and state governments will receive funding to help offset some of the impacts brought on by the onslaught of foreclosures and abandoned properties.
  • Increases the tax credit for certain energy-efficient home upgrades to $1,500 and extends the credit through 2010.
  • Provides up to $1.5 billion for short-term rental assistance or other aid for families  impacted by the economic crisis.

Again, this list is by no means all-inclusive. And it’s subject to modification by lawmakers before Congress votes on it.

Once the bill is passed and signed into law by President Obama, I’ll post a follow-up article with details. And if things change again between now and then, I’ll provide an update as well.

So stay tuned…

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This entry was posted on Thursday, February 12th, 2009 at 5:40 pm and is filed under Buying, Contra Costa, Loans / Financing, Solano, The Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  1. jeana reed said at February 22nd, 2009 at 9:12 pm

    The loan mod process is drooling. Its a wait game. HopHefully, the banks will follow the guidlines that the govt has issued in regards to helping the homeowners in trouble instead of buying more banks and thinking that the bailout money is all for them to do whatever they want. The homeowners have to jump thru hoops and take whatever is so little offered but the banks didn’t seem to have to work to hard to get there hands on the taxpayers money.

  2. Rod Herman said at February 22nd, 2009 at 10:37 pm

    Let’s hope that the banks have finally gotten the message. It’s time for them to stop giving lip service about wanting to help people avoid foreclosure. It’s time to start showing that they mean it by their actions! Banks need to start expediting BOTH the loan mod and short sale process NOW!

  3. michaelson lisa said at April 26th, 2009 at 7:05 am

    I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.

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