This past week the President of the United States signed the Housing and Economic Recovery Act of 2008. The purpose of this bill is to help many of the 400,000 homeowners refinance their loans into more affordable loans that are backed by the government.
For first time home buyers, this bill will offer a temporary tax credit.
Also included in this bill, is reform focused on modernization of Freddie Mac and Fannie Mae. In addition, there will be permanent increases in conforming and FHA loan limits.