Home finance news-"Making Home Affordable" details, $8,000 tax credit and new FHA max loan amount!

Today is the day many Americans have been waiting for; the day the details of the American Recovery and Reinvestment Act pertaining to home re-financing and loan modifications are released.
FinancialStability.gov website
We now know the following about the re-financing program:
1. If you own a primary residence;
2. That primary residence has a a Fannie Mae or Freddie Mac loan on it;
3. You are not more than 30 days late on your mortgage;
4. And, the amount your owe on your loan is equal to or more than the value of your home...
You are qualified to apply for a Home Affordable Refinance. You need to contact your 1st loan lender to inquire about the process to apply and what documentation you will need to provide.


We know know the following about the loan modification program:
1. If you own a primary residence;
2. You owe $729,750 or less on your 1st mortgage;
3. You have had a significant increase in your payment, your income has dropped since you got your loan, or you have a special financial hardship;
4. And, your loan was originated prior to January 2009...
You are qualified to apply for a Home Affordable Modification. You need to contact your 1st loan lender to inquew about the process to apply and what documentation you will need to provide.

The FHA maximum loan amount has been raised from $271,050 to $346,250 as of February 25th, 2009 (This is back to the 2008 FHA max loan amount). This is great news for home sellers, who can now appeal to FHA buyers, if their homes are listed up to the new FHA maximum . It is also great news for home buyers, who now have FHA financing available on a broader range of properties. The downpayment on an FHA loan is 3.5%, whereas a downpayment on a conventional loan is 10%. FHA loan limits website

Also, first time homebuyers purchasing a primary residence prior to December 1st, 2009 are eligible for an $8,000 tax credit, simply for purchasing a home. Visit the IRS website to find out more about this credit that does NOT need to be paid back. You must live in the home for 36 months, as your primary residence. Also, to be considered a first time buyer, this purchase needs to be the only primary residence you have purchased over the last 3 years. IRS website for credit information