What’s in Pres. Bush’s New Housing Law

On Wednesday, July 30th President Bush signed into law a new housing relief law aimed at helping out the nation’s struggling housing market and those homeowners affected by it.  The bill is intended to rescue about 15% of the homeowners that are in danger of losing their homes to foreclosure.

While it can be a bit confusing to disect what exactly this new bill includes, I found a great resource on CNBC.com that breaks down the benefits.  Here are some of those benefits:

  • All homeowners who do not itemize their income taxes can deduct between $500 and $1,000 from their 2008 federal taxes.
  • Anyone buying a first home between April 9, 2008, and July 1, 2009, will receive up to $7,500 in federal income tax credits.
  • Homeowners struggling to make payments on high-interest mortgages can contact their banks and transform their loans into government-backed, 30-year fixed-rate mortgages.  To qualify for this break their mortgage debt-to-income ratio must be greater than 31 percent.
  • First-time buyers or homeowners with subprime mortgages in some states can qualify for low-interest loans or refinancing under a provision allowing states to offer an additional $11 billion in tax-free municipal bonds to pay for such housing projects.
  • Homeowners strapped for cash will be able to receive preforeclosure financial counseling and legal services.

Now, not everyone qualifies for these breaks it is a good to see some steps being taken to help the millions that have been affected most by the shady lending tactics that are one of the causes of the current housing and financial slumps.

Stay tuned because in the next few days I’ll share some tips for making sure you’re not getting in over your head when it comes times to getting a mortgage for your new Rock Hill, SC or Fort Mill, SC home.

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