The American Recovery and Reinvestment Act of 2009 passed the House in February. The mix of provisions of interest to real estate agents and homebuyers changes frequently throughout the legislative process.
The new bill reinstates last year’s 2008 loan limits for FHA, Freddie Mac and Fannie Mae loans. The limits were equal to or greater than 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie Mae and Freddie Mac, with an overall maximum cap of $729,750.
The higher limits apply in areas where the 2009 limits were higher. The bill also includes a clause providing the HUD Secretary with the authority to increase the loan limit for any sub-area. The authority is limited to the cap of $729,750. The 2009 limits are in effect through 12/31/2009.
With this program more American families will be eligible to purchase or refinance their home using FHA-insured mortgages. This program will allow HUD to increase its loan limits and insure larger mortgages at a more affordable price, helping families across the nation over come problems with today’s volatile mortgage market.
The reverse mortgage product known as the Home Equity Conversion Mortgage will also have a new national limit of $625,000, a significant increase from the previous limit of $417,000. Some areas may have higher limits.
House and Senate approval of the loan limits provided in the final bill is a benefit to homeowners, buyers and real estate agents. NAR’s Call for Action to both the House and the Senate showed their strong support for the provisions that were included in the final bill to be approved by both Chambers.
Other provisions of the Stimulus Plan include:
First Time Homebuyer Tax Credit
Neighborhood Stabilization
Commercial Real Estate
Rural Housing Services
Low Income Housing Grants
Tax Exempt Housing Bonds
Energy Efficient Housing Tax Credits and Grants
Transportation Investments
Broadband Deployment
Mark Goedert has been in the real estate industry serving Michigan’s Down River Clients for over 50 years. Goedert Real Estate professionals are constantly keeping up with changes in the industry and new techniques for utilizing federal and community programs for home buyers and sellers. Visit his website for access to innovative technological services available to real estate investors.
Mark Goedert serves clients in the Down River area, Calhoun, Battle Creek, Marshall, Albion, Hillsdale, Ingham, Lansing, Okemos, Mason, Jackson, Lenawee, Adrian, Tecumseh, Hudson, Livingston, Howell, Brighton, Pinckney, Macomb, Sterling Heights, Warren, St. Clair Shores, Monroe, Temperance, Bedford, Oakland, Farmington Hills, Royal Oak, Southfield, Washtenaw, Ann Arbor, Ypsilanti, Saline, Wayne, Detroit, Dearborn, Livonia, Canton, Trenton and more in South East Michigan.
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