This is an overview of the Housing Act that Congress just passed. Read it and you can see how it might affect you.
R 3221, the Housing and Economic Recovery Act of 2008 National Association of REALTORS® Summary (as of 7/24/08)
H.R. 3221, the "Housing and Economic Recovery Act of 2008," passed the House on July 23rd by a vote of 272-152. The Senate must now approve the language adopted by the House. The Senate is expected to approve the bill on Friday, July 25th or Saturday, July 26th. The President has said he will sign the bill. It includes:
· GSE Reform - including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
· FHA Reform - including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
· Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
· FHA foreclosure rescue - development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
· Seller-funded downpayment assistance programs - codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
· VA loan limits - temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
· Risk-based pricing - puts a moratorium on FHA using risk-based pricing for one year. This provision does will be effective from October 1, 2008 through September 30, 2009.
· GSE Stabilization - includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
· Mortgage Revenue Bond Authority - authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
· National Affordable Housing Trust Fund - Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
· CDBG Funding - Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
· LIHTC - Modernizes the Low Income Housing Tax Credit program to make it more efficient.
· Loan Originator Requirements - Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.
Want to know more? Feel free to contact us at anytime at 602-955-9999.
NOW IS THE TIME TO BUY..
ZIP Code: 85351 Location Characteristics: Sun City continues to be one of the least expensive options for retirement in the country. The homes are being updated on a regular basis now and the recreation facilities are great. If you can not afford to buy in Sun City West or Sun City Grand, then by all means give Sun City a second glance. It is an adult exclusive community designed to cater the needs of retirees. There are seven recreational centers, two bowling alleys, three country clubs, the Sundome and close to many other area attractions.
The average single family price is under $200,000 and under $150,000 for condos and townhomes. Summer is the best time to purchase a home in Sun City, because fewer buyers are looking and inventory has been aging for longer.
Want more information? Call or email us. We would love to answer any questions you may have and help you find or sell a home.
About Doug, Peggy and Becca Nystrom:
The Nystrom Team has been helping families in Phoenix since 1979. We have seen the full circle of market conditions more than once. Peggy has lived in Phoenix since the mid 70's, while Doug and Becca were born and raised here. We have seen the Valley grow into the nation's 5th largest city.
Our Resume:
E. Douglass Nystrom, Designated Broker
Doug went to Point Loma University, earning his bachelor’s degree in Political Science. However, having grown up around real estate, he decided to come home to help grow the family business. He received his real estate salesperson license in 1997. In 2002, he earned his broker’s license and Nystrom Realty was formed. Doug is the tech whiz of the group, always looking for new technology to stay one step ahead of the competition and ultimately, out market them. He has taken over a large part of the marketing since becoming broker. For an example, visit www.NystromHomeTours.com. Doug is currently working on obtaining his GRI designation.
Peggy J. Nystrom, Associate Broker , CRS, GRI, ABR, e-Pro
Peggy earned her real estate salesperson license in 1979 and her real estate broker's license in 1984. Peggy is a Graduate of the REALTOR Institute (GRI). In 1996, she also received her ABR designation (Accredit Buyer Representative), one of less than 25,000 REALTORS who have this designation. In addition to this, she is one of the few agents who took the time to earn the Certified Residential Specialist designation. In 2003, she completed the courses for the e-Pro designation, which is for advanced real estate computer/internet skills awarded by The National Association of REALTORS. Peggy's first 10 years of real estate were spent handling the escrows and making sure the sale closed by working with clients, lenders, title companies, inspectors, etc. Her husband, Earl, handled most of the upfront business. When he started a real estate supply business 17 years ago, Peggy took over all aspects of the real estate business, including the listing of properties, negotiating contracts, and closing the sale.
Rebecca A. Nystrom, Real Estate Salesperson, WCR
While attending Grand Canyon University and Western International University, Becca began her career in the world of finance. While at Discover Card Financial, she was the recipient of numerous awards, including the coveted Raymond A. Kennedy Award for employee excellence. Becca earned her real estate salesperson license in 2003 and is currently working on her GRI designation. She is an active member of the Women's Council of Realtors. Becca is also active in the community, including working with youth and the homeless.
Our team consists of just the three of us. We are a small family firm focused on providing individualized attention to each and every client. We do not have assistants, because we believe that you are hiring us, not an assistant. We do not try to be the biggest agents in town, because those agents often lose sight of the most important aspect, you, the client.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
