Last Week President Bush signed the (HR-3221) Housing and Economic Recovery Act of 2008 into law. It will take me some time to dredge through the 694 pages, but in the meantime, here are some of the highlights and how it impacts San Mateo borrowers and the soon-to-be borrowers.
- San Mateo County conforming loan limits will now be permanent, but decreased from the current $729,750 down to $625,000.
- If you are a San Mateo first time home buyer that purchased a home between April 9th 2008 and June 30th 2009, you can receive a tax credit up to $7,500.
- Earmarked funds for local governments to purchase and restore blighted homes and neighborhoods have not yet been designated.
- Adjustments to FHA
- Expansion of the FHA financing program to help delinquent home owners
- Termination of Down Payment Assistance Programs
- Increased FHA financing down payment from 3% to3.5%
- Upfront FHA Mortgage Insurance increase from 1.25% to 3%
- The Capital Gains Exclusion of $250,000 if you’re single and $500,000 if you are married will now be calculated as a ratio and not an all-or-nothing exclusion. The formula to calculate your Capital Gains Exclusion will be based on your home’s actual usage as a primary residence:
This is only a quick overview of this very important Housing Law. Watch for future posts that will address more of the issues that will impact you as a San Mateo home owner or a soon to be home owner in San Mateo.
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Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.
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