Economic Stimulus Update

Here is an update on the Housing Stimulus Package in Congress. You may want to contact your Congressional Rep or Senator to state your support, or not.

A huge incentive would be to eliminate the repayment provision for the $7500 home buyer credit! Read on for more:


U.S. House passes stimulus packageLast Wednesday, the United States House of Representatives passed on a largely partisan vote of 244-188, HR 1, the American Recovery and Reinvestment Act of 2009. The economic stimulus bill, as the legislation is more commonly known, contains a number of key provisions:

-Restoration of the 2008 loan limits for FHA, Fannie Mae, and Freddie Mac to 125% of median home price up to a limit of $729,750
-Elimination of the repayment provision of the $7,500 first-time homebuyer tax credit
-Expansion of tax-exempt housing bonds
-Increased funding for the Rural Housing Service Program
-Additional funding for neighborhood stabilization activities under the Community Development -Block Grant Program
-Incentives to promote weatherization and energy efficiency
-Retrofitting federally assisted housing for energy efficiency
-An expansion of the Hope VI low-income housing construction and rehabilitation program

The House has also addressed a number of housing issues in legislation revamping the Trouble Asset Relief Program. Among the housing provisions of interest in the TARP Reform and Accountability Act of 2009, HR 384, are:
-A mortgage buy-down program to reduce rates below current prevailing market rates
-Increased foreclosure prevention and mitigation efforts
-Ensuring liquidity in the residential and commercial mortgage markets
-Streamlining efforts to unclog the credit markets and increase the availability of credit to worthy customers

Once the Senate passes a measure, the differences with the House version will be worked out in a conference committee.