For those who don’t have enough time to muddle through the recent Housing Act, here is an attempt at the demystification of the governmental nomenclature…say that 3 times fast!
$300Billlion in FHA Loans for Beleaguered Homeowners who Qualify for Refinance
- The Skinny: Possible refinance into an FHA Loan
- The Upside: 400,000 people/home owners will be happy
- The Truth: Qualifiers = 1. Primary Residence 2. Low Debt to Income 3. Share in the profits with the Gov. if your ever sell (Equity Share…we’ll see more of this in the future!
Tax Credit for New Home Buyers = $7,500.00
- The Skinny: Not a Credit…It’s a Loan (Carpetbaggers Spin!)
- The Upside: It’s a refundable credit & a 0% (zero) loan…& up to 3Million buyers could qualify for the credit
- The Truth: In the long run…you have to pay it back…i.e. “A Loan.”
$4Billion to buy Rehabs
- The Skinny: Communities in need can purchase foreclosed homes at a discount, flip’em and use the profits for local development endeavors
- The Upside: It opens the door for low to moderate incomes to purchase homes
- The Truth: Helps communites stave off the vermin that inhabit vacated properties and reduce the negative element. Allows low income areas to rejuvinate. The best part of the Act!
New Deductions for Real Proeprty Taxes
- The Skinny: You get to keep you standard deductions + MORE!
- The Upside: The deducitons begin today!
- The Truth: More Tax Deducitons for homeowners…Giddy-up!
Change in Vacation Home Status
- The Skinny: 1 home and only 1…for tax benefits
- The Upside: Current status doesn’t expire until January 1, 2009.
- The Truth: Big Bummer for the High Earners!
It appears that this was not only an attempt to salvage the ship wrecked mortgage/banking industry and its “flotsum and jetsum” of homes lying on the shores of the Sea of Despair…but the Dems stood up for the little guy and took a shot at the bow of the Wealthy Blue Bloods Yachts in Newport and Telluride.
In reality we are facing a tidal wave of tough time for the housing and mortgage/banking community. Look for more governmental intervention. This is the thumb in the dike…what this doesn’t fix is the ever increasing “crack” at the bottom of the levee.
I apologize for the water metaphores however, today we’re swimming through the muck…tomorrow…monsoon!
