The first amendment to the new act includes an amendment to the FHA Housing Stabilization and Homeownership Retention Act which expands FHA programs so many borrowers in danger of losing their homes can refinance into a lower cost government insured mortgage they can afford. The expansion is limited to owner occupied primary residences only and would also provide up to $230 million for financial counseling to help families stay in their homes.

The amendment also strengthens regulations on Fannie Mae, Freddie Mac and the Federal Home Loan Bank system and includes an increase jumbo mortgage loan limits in high cost areas, making home ownership more affordable for homebuyers in these areas.

The second amendment would provide $11 billion in tax benefits to help spur home sales and stabilize the U.S. housing market. First time homebuyers could receive up to $7,500 in a refundable tax credit that works like an interest free loan that is to be paid back over 15 years. There would also be a temporary increase of $10 billion in a tax exempt mortgage revenue bond to refinance subprime loans and to provide loans to first time homebuyers.

NAR President Dick Gaylord said, “This is meaningful legislation that can have a major impact. Our Realtor® members appreciate the House’s hard work and bipartisan effort in bringing forth legislation that will go a long way toward helping people become and remain homeowners.”

For more mortgage news and information on government mortgage aid programs visit Future Planning Financial at www.fpf-direct.com.