February 12, 2008, Jacksonville, FL
The Senate and House of Representatives have come to agreement on an Economic Stimulus Package. It is currently awaiting the President’s signature to be signed into law, that will raise Federal Housing Administration (FHA) and Government Sponsored Entities (GSEs) conforming loan limits to as high as $729,750 in high cost markets until December 31, 2008. That limit is temporary and will not apply equally across the country and although it is being signed into law soon it may take some weeks before the exact details of specific loan limits for your specific area are available through lenders. The stimulus package also provides immediate tax rebates for 2007 income tax filers.
This stimulus package offers a unique opportunity for first-time Latino homebuyers on their quest to purchase a new home. How it can help? On average, a family of two adults and two children could receive up to $1200.00 by May provided they have filed their tax returns for 2007. This rebate can play an excellent role in partially assisting many buyers in overcoming the down payment and/or closing costs barrier.
By utilizing the rebate checks as down payment or as part of the closing costs on affordable mortgage programs like FHA, My Community Mortgage and others that assure sustainable home ownership, Latino borrowers will have an opportunity to not only purchase their first home, but to also begin to create wealth and family stability.
Another possible use could be opening a savings matching account like an Individual Development Account (IDAs). If Latinos are disciplined enough to invest it in homeownership, it could be an investment that can last a lifetime.
By Bill Arce
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