St. Louis Real Estate Blog

New Housing Legislation

August 5th, 2008 6:14 PM by Melanie Mitchell - Team Lead/Listing Specialist

The President has signed historic housing legislation that is set to help revitalize the real estate markets. This far reaching legislation will help homebuyers in many ways. For example, starting October 1, distressed homeowners will have the ability to refinance into fixed rate FHA mortgages and present lenders who hold the mortgages will be encouraged to write down the principal balance to 90% of the current value of the home. Details regarding the procedures for this program are expected to be released in the coming weeks. In addition the legislation permanently increases conforming and FHA loan limits, increases VA loan limits temporarily until the end of the year and adds a tax credit for first time buyers. Not all the news was positive as seller-funded downpayment assistance programs will no longer be allowed by FHA. If you are considering purchasing and you need assistance for the downpayment, it is suggested you act quickly because the ban does not go into effect until October 1. Source: Various News Sources

New home sales fell in June, the government said Friday, but the annual rate was stronger than economists expected. The Census Bureau reported Friday that June sales of new single-family homes came in at a seasonally adjusted annual rate of 530,000, down 0.6% from May's revised reading of 533,000. That revision was significant; the original May reading was 512,000. The June figure was much higher than the economists' consensus forecast of 505,000, as compiled by Briefing.com. Despite the monthly sales decrease, economists and investors reacted favorably because the upward revisions in previous months indicated a stronger market than previously believed. Source: CNN/Money

Mark Groman, Executive Officer, Gorman & Gorman Home Loans

Posted in:General
Posted by Melanie Mitchell - Team Lead/Listing Specialist on August 5th, 2008 6:14 PM

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