Obama Stimulus Package and Omaha Real Estate
Posted by: Mike Terry in Untagged on
Feb 16, 2009
Here are a few of the main points which the new stimulus bill will bring to the housing market...
1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.
The information comes from an NAR article. The new loan limits won't make much of a difference here in the Omaha real estate market however the foreclosure mitigation and tax credit should have a good sized affect.
