Housing repair kit is market band-aid

A sweeping house legislation was signed by President Bush July 30, 2008. This housing repair kit is designed to offer incentives for first time buyers and homeowners. With any luck, it will put a band-aid the current housing market.

The housing market needs help. The legislation was primarily created to help mortgage providers Freddie Mac and Fannie Mae, and to put a halt on foreclosures, but it does more that just that. It provides help to first time buyers and raises the mortgage allowances for high cost markets. It also creates tax relief, new disclosure requirements, mortgage help, federal aid, and affordable housing. Representative Barney Frank, Newton Democrat states, "There's enough for some, but not for everybody. If we had more money, we could do more."

The new legislation will provide a $7,500 tax credit for buying a home by next July 1, hoping to increase sales in home purchases. Lenders are now required to disclose the full costs of the loan over its lifetime, including payment increases and other types of adjustable rate mortgages.

More buyers should now be able to access lower cost federal backed mortgages, and Freddie Mac and Fannie Mae federal housing administration will increase loan amounts from $417,000 to $481,000. Communities hit hard will be able to share $4 billion in order to stabilize the neighborhood, and low income housing projects are increasing across the United States.

To read more on the Housing Legislation, click here.