Almost a half million homeowners will be assisted by the Housing Act and a good portion of those people are living in
California. The homeowners will be able to refinance their current loans while having it backed by the
Federal Housing Administration. In addition, the loan limits will increase for high priced real estate areas like
La Jolla, Coronado and Rancho Santa Fe. Conforming loan limits have been increased to $625,000. As some of you may remember the
loan limit was increased back in February to over $720,000, which ran until the end of the year. It would have been nice
to keep the same loan limit, but companies like C.A.R. are happy with the new limit. This should really open up the opportunities
for first time buyers and will also allow many to refinance.
One of the provisions I really liked was a first time homebuyer tax credit, which would enable the first time buyer to obtain a
tax refund as much as 10% of the homes purchase price, or a max refund of $7,500. This would be an interest free loan, which
the homeowner would pay back over the next fifteen years.
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