Mortgage Update

From Huck Ferrill, our guest mortgage blogger, the nuts and bolts of Congress' housing reform package is below. Some good, some not so good.

The not so good:
Seller funded down payment assistance (Nehemiah) will be gone if the loan is not approved by Sept 30, 2008. Gifts from relatives and public nonprofits is still OK
Minimum borrower cash investment requirement for FHA is increased from 3% to 3.5%. It can all be a gift. Seller credits are still allowed for closing costs but not down payment.

The good:
Higher conforming loan limits are being made permanent. Max $625,000 and dependent on area median price.

The great:
$7500 tax credit for a first time buyer(s). Max income $75,000 for a single person and $150,000 for a married couple. Everyone who doesn't own a home should find out about this as fast as you can tell them.