Last week was a very eventful week for Congress and we’ve got lots of things to be thankful for. The obvious is health, family, happiness, etc. However, there is much more had happened in the real estate world last week that we should all be thankful for. Here is a list of all the great things that took place last week:
CONGRESS RAISES FHA LOAN LIMIT
As you know, in late September the FHA, Fannie Mae; and Freddie Mac loan limits were reduced in 42 states pricing potential home buyers out of the American Dream of home ownership and holding back the housing recovery. Congress restored the loan limits for the Federal Housing Administration (FHA) for two years. The reinstated FHA loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties in 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000. The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets, the floor will remain at $271,050.
NATIONAL FLOOD INSURANCE PROGRAM RECEIVED SHORT EXTENSION!
The same bill that extended FHA loan limits also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011. NAR will continue to press Congress to use the additional time to complete their work on a five-year reauthorization of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country. Don’t get caught without flood insurance. Make sure to CLICK HERE to tell congress to reauthorize the National Flood Insurance Program!
FANNIE AND FREDDIE PROVIDE NEW HARP GUIDELINES!
The new Home Affordable Refinance Program (HARP) program has been extended through December 31, 2013 and has highly anticipated guidelines. Among the key program revisions, the GSEs have eliminated or raised the loan-to-value (LTV) cap, and relaxed representation and warranty stipulations – changes that officials expect to at least double the number of homeowners with a HARP-refinanced mortgage. Also, there are no LTV restrictions for fixed-rate mortgages with terms up to 30 years, including those with terms of 15 years. This will provide a great opportunity for homeowners to refinance their upside mortgages at the current low rates!
HOME MORTGAGE RATES ARE REALLY LOW!! SO CONTACT ME NOW TO HELP YOU GET STARTED ON YOUR HOME BUYING SEARCH!