For a short time you can take advantage of what many are calling the most significant mortgage reform in decades!!!

First-time buyers, sellers frustrated with a slow market, current homeowners looking to refinance, and those in danger of foreclosure could all reap the benefits of the recently passed
Housing and Economic Recovery Act of 2008.

First-time buyers and those who have not owned property within the last three years will benefit from the first-time home-buyer tax credit of 10% of the home purchase price (up to $7,500). They must make their purchase between April 9, 2008 and April 9, 2009. The credit phases out for individuals making more than $75,000 or a couple making more than $150,000 a year. The credit functions much like an interest free loan from the government; it is not a tax deduction and must be paid back in equal installments over 15 years.

The last time the government passed a tax credit for home buyers in the 1970's, sales of homes increased and inventory of new homes on the market went from 10 months to under 6.

Those who are looking to purchase a home in the higher price ranges or who want to refinance will be helped by permanent increases in FHA loan limits. These new limits, as much as $625,000, depending on the area, will help many potential borrowers qualify for affordable mortgages at low rates. Loan limits in our region will be $411,700.

Homeowners in risk of foreclosure will welcome
foreclosure relief measures. These homeowners can trade high-cost loans for more affordable ones backed by FHA. Since foreclosures can sometimes mean decreasing values for neighboring homes, this provision benefits all homeowners.

Government support of
Fannie Mae and Freddie Mac will increase consumer confidence in the housing market, which is good news for all homeowners, both current and potential.

Thanks to Mitch Wilcox of Response Mortgage Services in Bend for the recent seminar I attended that provided the information above.