Stimulus Package Affects HECM Maximum Loan Amounts

Please note change in maximum HECM limit for remainder of the year below at first bullet:

The $787 billion economic stimulus bill signed into law yesterday by President Barack Obama will have at minimum the following impact:

· Restores the 2008 government-sponsored enterprises and Federal Housing Administration loan limits for the 2009 calendar year, to as much as $729,500 for some high-cost areas, and increases the Home Equity Conversion Mortgage limit to $625,500 (previously $417,000).

· It increases the First Time Home Buyer Credit enacted under the Housing and Economic Recovery Act to $8,000 (from $7,500) and extends the credit to December 1, with no repayment requirement.

· The law expands the tax credit for making energy efficient home improvements to 30 percent of the improvements, up to a maximum of $1,500. Eligible improvements include energy efficient doors and windows; insulation, heat pumps, furnaces, central air conditioners and water heaters. Here’s another reason why you should be doing the FHA 203K “Streamline” rehabilitation loan

· This legislation contains a record-setting $10.472 billion in funding for the USDA Guaranteed Rural Housing Program. These funds are in addition to funds the program has already received through the Continuing Resolution, as well as additional funding expected from FY 09 Appropriations legislation or further Continuing Resolution legislation.