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We continually monitor the mortgage industry including any legislative changes or upcoming proposals that will impact you and strive to present the information in a way that clearly shows you your opportunities while achieving your financial goals.

HR 3221 “Housing and Economic Recovery Act of 2008” was signed into law on July 30, 2008 by President Bush, as a plan to help homeowners avoid foreclosure and to boost the housing market. The provisions in the large bill may be interpreted in different ways; resulting in potential conflicting information internet as well as in print media.

We’ll be updating our website with information regarding the implementation of these changes as well as offering Free Reports which will list out the details of these provisions.

Some of the key provisions with an overview of the highlights are provided below:

First Time Home Buyer Tax Credit

· First Time Home Buyer is a person who (or a couple where either individual) has not owned a principle residence for a three year period prior to the purchase.

· Homes purchased on or after April 9, 2008 and before July 1, 2009

· Maximum credit is $7,500

· Qualifying for the full tax credit: single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000.

· Individuals and married couples with incomes over the listed amount may be eligible for a partial tax credit.

· The tax credit will be repaid interest free over a 15 year period; if the full tax credit is given the annual payment amount will be $500. Please contact us if you need a referral for tax professional to determine what this means if you qualify.

FHA Modernization

· The minimum down payment required for an FHA purchase is currently 3% which will be increased to 3.5%.

· The bill removes seller funded down payment assistance (DPA) programs as of September 30, 2008. HR 6694 was introduced by several members of Congress on July 31^st, 2008 which if signed into law would allow DPA to continue.

Hope for Homeowners Plan

· Help borrowers avoid foreclosure by allowing them to refinance into a lower-cost government insured mortgage they can repay.

· Up to $300 billion will be allowed by Congress for FHA to guarantee these new mortgages if lenders voluntarily agreed to adjust the terms and outstanding principal.

· While the lenders will be assuming a substantial loss to lower the loan principal, the borrowers must agree to share any profit form the resale of a refinanced home with the government to utilize the FHA guarantee.

· $180 million is also provide for legal assistance and financial counseling to help families stay in their current home.