RealEstateAdvice.com Blog, News, advice, opinions and shared insight about capitalizing on opportunities in real estate and mortgage financing

I. Housing Legislation

The President recently signed the hosuing bill into law. The major provisions of the omnibus housing bill are:

a. FHA Modernization
b. FHA Rescue (Foreclosure relief)
c. GSE Reform
d. Tax provisions (Maximum tax credit was lowered to $7,500 for first-time homebuyers.)
e. Secure and Fair Enforcement for Mortgage Licensing Act of 2008 or "S.A.F.E. Mortgage Licensing Act of 2008
1. Establishment of nationwide mortgage licensing system for loan originators

II. FHA Provisions

Ø Mortgage limits

· FHA base limit ("floor") is increased from 48% to 65% of GSE limit ($271,050)
· Maximum loan amount in high cost areas is increased to 150% of the current GSE base limit ($417,000). The new limit for FHA, Fannie and Freddie will be $625,000. VA should have equivalent guaranty ($156,250)

· The factor for calculating increases is 115%

Ø Seller funded downpayment assistance programs

· Any downpayment assistance programs involving sellers or other interested third parties will be terminated on October 1, 2008
o Borrowers must be approved on or before September 30^th.

The new housing bill signed recently by the President includes a $7500 tax credit. This is an actual credit, not deduction. If first time buyer purchases between now and June 3th, of 2009, they qualify. There are income limits that start phasing this out at $150,000 for a couple. The credit does have to be repaid over 15 year schedule, but at that point, buyer is benefiting from mortgage deduction.

Mortgage rates are still low, the government has raised the FHA limits giving buyers and people refinancing even with low down payments and not so good credit new opportunities.

Apartment loans for commercial properties, 5+ units are less than 6% now for 10 year loans. These are better rates than singel family to 4 units.

People with money are buying, buying and buying now because there are so many opportunties.

With FHA financing, buyers can buy a 4 unit building with only 3% down and a loan up to 4 units $1,403,400!

What deals are you looking at or need help evaluating the opportunity?

I'm thinking of selling my home and buying a home with my boyfriend. I would only be 30% owner. The property is 1.5 million while my current residence is worth 550,000.00. would this be a smart investment and how do we do the loan/title?

Kelly Maciel