President Bush signed the new housing bill today. It is designed to help those in need avoid foreclosure. It is supposed to help as many as 400,000 homeowner refinance their current loan with new loans backed by the Federal Housing Authority(FHA)
President Bush originally threatened to veto this measure but was under extreme pressure to provide assistance to home owners in need. Here are some of the high and low points of the bill.
High Points:
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Helps home owner is need by refinancing bad loans
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provide up to $7500 tax credit for first time buyers
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increases loan limits to $625k for FHA, Fannie Mae & Freddie Mac
Low Points:
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Eliminates third party down payment assistance
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increases federal deficit by 800 billion (With a B)
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Puts tax payers on the hook for potential losses by foreclosures
So will this help you or hurt you. It all depends on your situation. If you are a home owner with good credit you may be able to refinance into much more favorable terms.
If you are a first time buyer and don't have a lot of money for a down payment, you may be squeezed out until you can save 3 1/2 percent for a down payment.
The long term affects could end up hurting us all, as our government puts on the potential hook for over 800 billion.
What do you think?
Does this help or hurt you?
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