Congress Passes Housing and Economic Recovery Act

No word on the presidential signature yet – but he is still expected to sign. Here’s the latest on the Act from Minneapolis Realtor!

Congress has passed The Housing and Economic Recovery Act of 2008, providing some much-needed stimulus to the housing market. The President is expected to sign the bill on Tuesday, July 29.The comprehensive bill includes GSE and FHA reforms, an FHA foreclosure rescue, a homebuyer’s tax credit, limits on seller-funded down payment assistance programs, temporary increases in VA loan limits, and establishment of a National Affordable Housing Trust Fund, and many other provisions. The bill includes various effective dates for these provisions, so studious review is required.

As with most Congressional actions, this bill is not without some controversy. Some members are not happy about the new limits on seller-funded down payment assistance; others see the program as a bailout for homebuyers who accepted risky loans or used their home equity carelessly.That said, the bill offers some welcome
assistance and could be the kick-start the market needs to push potential homebuyers into action. It will surely be the talk of the town in the coming days.

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