We’ve got some good news for people who are buying or selling homes, it’s the Economic Stimulus Act.  Basically this is the U.S. government’s plan to jumpstart the economy.  So far most of the attention has been on the rebate checks that millions of taxpayers are receiving but the new bill is also designed to help “high-cost regions” of the country by means by: 

1.  Temporarily increasing the conforming loan limit from $417,000 to $729,750.  What does this mean for you?  Well you can borrow up to $729,750 at the lower interest rates that were once reserved for loan limits up to $417,000.  This can make an enormous difference in your monthly payment!

2.  Temporarily increasing the size of the FHA loans (Federal Housing Administration) they can insure from $362,000 to $729,750.  And how does this affect you?  Well it makes borrowing easier!  For most of 2008, it’s been extremely difficult to obtain mortgages with 5% and 10% down.  Lately it’s been at least 20%, and that’s a lot of cash!  With these FHA loans, you can once again borrow with 5% and/or 10% down.  This is really great news! 

Though the Economic Stimulus Act is only planned to last until the end of 2008, it will definitely help those people who are pro-active and take advantage of its benefits. 

Our last bit of good news is for those who are already in homes and have mortgages…the Stimulus Act does not exclude you from refinancing to take advantage of these lower conforming interest rates.  We at REALESTATE-SANTAMONICA.COM don’t do mortgages, but we are happy to refer you to brokers we use and trust.  Good luck, and remember we’re here to help you.   Colin Whelan