This is my first post on my Point 2 site and I’m still relatively new to blogging on Active Rain. But when I received an email about the passing of the 2008 Housing & Economic Recovery Act; I was inspired to blog.  Mainly because I didn’t know many of the provisions and figured many other people don’t as well.  Here are a few:

10% Seller-Funded Downpayment Assistance Programs

Codifies existing FHA proposal to prohibit the use of downpayment
assistance programs funded by those who have a financial interest in
the sale; does not prohibit other assistance programs provided by
nonprofits funded by other sources, churches, employers, or family
members. This prohibition does not go into effect until October 1,
2008.

FHA Foreclosure Rescue

Includes the development of a refinance program for homebuyers with
problematic subprime loans. Lenders would write down qualified
mortgages to 85% of the current appraised value and qualified
borrowers would get a new FHA 30-year fixed mortgage at 90% of
appraised value. Borrowers would have to share 50% of all future
appreciation with FHA. The loan limit for this program is $550,440
nationwide. Program is effective on October 1, 2008.

FHA Reform

Includes permanent FHA loan limits at the greater of $271,050 or 115%
of local area median home price, capped at $625,500; streamlined
processing for FHA condos; reforms to the HECM program, and reforms to
the FHA manufactured housing program. The effective date for reforms
is immediate upon enactment, but the loan limits will not go into
effect until the expiration of the Economic Stimulus limits (December
31, 2008).

Homebuyer Tax Credit
A $7500 tax credit would be available for any qualified purchase
between April 8, 2008 and June 30, 2009. The credit is repayable over
15 years (making it, in effect, an interest free loan).

Not my idea of a solution.