TeamworkHomes_IHB
New member
A New Housing Bill was Signed by President this morning
Provisions relevant to OC renters and homeowners are summarized below:
(1) An estimated 400,000 homeowners facing foreclosure, many of whom reside in California, can refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. To qualify, homeowners would have to be paying more than 31 percent of their incomes toward their mortgages and show they could afford to make the payments on a new, smaller loan.
(Comment: maximum debt to income ratio can go up to 50% with compensating factors, if approved by automtic underwriting machine; On the other hand, a lot of troubled homeowners will not qualify if they don?t know what to prepare now).
(2) Conforming Loan Limit permanently increases to $625,500 in high-cost areas, the government-sponsored mortgage companies Fannie Mae and Freddie Mac can buy and that the FHA can insure. The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area?s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area?s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
(Comment: many Californian will be able to refinance their mortgage to more affordbale ones, and first time buyers can enter the market more easily.)
(3) First-time home buyer tax credit up to $7,500, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home?s purchase price, up to a maximum of $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
(Comment: The clock is ticking. To receive $7500, buyers must buy a house by July 2009.)
Provisions relevant to OC renters and homeowners are summarized below:
(1) An estimated 400,000 homeowners facing foreclosure, many of whom reside in California, can refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. To qualify, homeowners would have to be paying more than 31 percent of their incomes toward their mortgages and show they could afford to make the payments on a new, smaller loan.
(Comment: maximum debt to income ratio can go up to 50% with compensating factors, if approved by automtic underwriting machine; On the other hand, a lot of troubled homeowners will not qualify if they don?t know what to prepare now).
(2) Conforming Loan Limit permanently increases to $625,500 in high-cost areas, the government-sponsored mortgage companies Fannie Mae and Freddie Mac can buy and that the FHA can insure. The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area?s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area?s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
(Comment: many Californian will be able to refinance their mortgage to more affordbale ones, and first time buyers can enter the market more easily.)
(3) First-time home buyer tax credit up to $7,500, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home?s purchase price, up to a maximum of $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
(Comment: The clock is ticking. To receive $7500, buyers must buy a house by July 2009.)
