Socialize
Yesterday, July 23rd, the Housing and Economic Recovery Act of 2008 (H.R. 3221) passed the House of Representatives and is now headed for the Senate. Since President Bush lifted the threat of veto, so it looks like this three year program will go into effect October 1, 2008.
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This legislation will permanently increase the GSE conforming loan limit for mortgage loans guaranteed by Fannie Mae and Freddie Mac and FHA to a maximum of $625,500, up from $417,000.
The bill will authorize a $300 billion expansion of FHA loan guarantee progrmas and gives the Treasury addtional leeway to buy the debt of Fannie Mae and Freddie Mac over the next 18 months.
What does this mean for the local Saratoga real estate market? Not much, since there are virtually no foreclosures in Saratoga and the price of a detached homes starts at $890 K. This bill, however, is essential for the American economy to help it get over the threat of recession and to ease the pain of over 400,000 homeowners throughout the nation who might otherwise lose their homes.