Congress Burns Money

Congress passed and President Bush just signed on Wednesday July 30th a massive 600 page $300 Billion Dollar “Housing Bill” ($300 billion will not touch what it will ultimately cost taxpayers) designed to revive the housing market. Rather than ramble about long term implications I thought I’d just give you specific details of the plan to see if any of the provisions that might benefit you. After I have a chance to review the details, I’ll provide more specifics.

By my count, there are really six major aspects to the plan.

1. Money for State/Local Governments to fix up foreclosed properties causing blight in neighborhoods

2. Additional powers for Treasury Secretary to lend Fannie Mae/Freddie Mac money or buy their stock

3. Permanently raise the limits of loans that Fannie/Freddie can purchase ($625,500 in high cost area)

4. New loan authority for the government (FHA) to back cheaper mortgages for troubled homeowners

5. Elimination of owner/Nehamiah/Ameridream down payment assistance programs for FHA loans

6. Tax credit of up to $7,500 for first time home buyers buying foreclosed properties