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 August 5, 2008

More Tax Provisions from Latest Housing Act
I thought we would continue on the trend and delve a little deeper into some of the provisions for the latest Housing and Economic Recovery Act of 2008. We have already touched on the first-time buyers credit / interest free loan, as well as, the increased loan limits.
Those of you who qualify and may be in trouble with subprime loans will have a chance to refinance your home. Lenders will have the ability to "write down" your mortgage to eighty-five percent of the home's current appraised value. This would open the door for the homebuyer who, once again, qualifies to refinance at a 30 year fixed at ninety percent of the home's appraised value. However, the homebuyer will have to split 50/50, with the FHA, all future appreciations.

There will also be a mortgage revenue bond authority which will allow ten billion dollars to be used in revenue bonds. This should once again help those with subprime issues.

Starting on October 1st through September 30th, there will put a halt to using risk-based pricing for one year.