Housing Stimulus Bill Passes Through Senate

Great news for the real estate industry as the Senate has passed the housing stimulus bill and is encouraging the House to do the same as soon as possible. It is this piece of legislation that will hopefully jump start the housing market by offering some great incentives for first time homebuyers and making the conditions for purchasing a home a little more stable. I know that everyone involved in Atlanta real estate has been anxiously awaiting the turn around of the market, and this legislation may just be what have been waiting for.

The National Association of Home Builders has provided a brief overview of what the bill entails:

- Create a temporary, first-time home buyer tax credit for the purchase of any home. This would stimulate the housing market, eliminate excess inventory, relieve downward pressure on house prices and bring otherwise-qualified home buyers back into the market.

- Establish a more effective and balanced regulatory system for the housing government sponsored enterprises (GSEs) – Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It would also permanently increase the GSE’s conforming loan limits up to $625,500, making home loans more affordable in high-cost areas.
- Give the Federal Housing Administration (FHA) greater flexibility to respond to the needs of borrowers, help more working families become home owners, provide a viable alternative to the subprime market and play a greater role in stabilizing the mortgage markets. The maximum FHA-insured loan would be permanently increased up to $625,500, helping prospective buyers to purchase homes in more markets across the country.

- Provide a temporary increase in state tax-exempt housing bond authority to help struggling home owners refinance their subprime loans and to increase access to affordable mortgage credit.

- Enhance the Low Income Housing Tax Credit (LIHTC) and tax-exempt housing bond programs to increase their effectiveness in addressing the nation’s continuing affordable housing needs.

- Expand the FHA program to provide additional authority to help at-risk borrowers refinance with viable mortgages and prevent further foreclosures. The Congressional Budget Office estimates this could help as many as 400,000 struggling home owners to stay in their homes.

You can read the entire article from the NAHB by clicking here.

AtlantaRealEstateForum.com will definitely keep you informed of the status of this bill and other factors affecting the Atlanta real estate industy, but you can also visit the National Association of Home Builders to follow along with the progress of the housing stimulus bill.