New Housing Law HR-3221 VA impact

The new housing recover act that was signed by President Bush is just jam packed with all kinds of great stuff. Well, maybe not all of it is so great but indeed some of it I was unaware of. I had no idea it made changes to some of the Veteran issues.



I'll be posting more about the other issues in the coming days but today is just about the Veterans Administration Changes. I think these are all good!

• It increases VA home loan limit for high cost housing areas


• It increases the time a Lender must wait before beginning foreclosure proceeding from three months to nine months after a service member returns from service AND gives returning soldiers one year relief from an increase in their mortgage interest rate.


• The act expands eligibility and increases the amount for special adapted housing benefits for the disabled. This is about money paid by the VA to help Vets make structural changes to their home to accommodate their disability.


• It also requires the Department of Defense to put together a counseling program for veterans and service members facing financial difficulties. It also establishes a moving benefit to service members who are forced to move out because their RENTAL housing was foreclosed on.

YEA!! I can really identify with the last bullet. This actually happened to my son. He was renting a lovely home in San Diego. He went to sea for 6 months. While he was at sea the house was foreclosed on and he was, ... up that well know creek. He lost his last month rent, security deposit and 50% of his household goods due to theft. When he got home, there was no home. He didn't even know where his stuff was.

This just happened in June of 2008. The stress he went through was unbelievable and he still has not recovered financially. I wonder if this benefit is retroactive and if so, to when?

He is back at sea again and I pray the home he is in now will be there when he gets back.

Always,

Connie

FHA Changes for 2008

The Housing and Economic Recovery Act of 2008 was signed by President Bush on July 30th but many people in the industry don't understand just what the changes are and how they will be impacted by them.

If those of us in the industry are confused just think how the consumer feels. Part of the problem is that there is so much information and it is hard to research because it is contained in many "ACTS" that were folded into the final ACT. Are you confused yet?

It may be the final ACT that means curtains for many of us. Sorry, that was really bad!

I have put together a page that covers what I have been able to unravel to this point. You'll find it here at Housing Recovery Act. I am still researching so that page will be updated as time goes by.

Here are some of the FHA changes and when they become effective:

• Minimum down payment has increased to 3.5%. effective Oct. 1, 2008
• Prohibits down payment assistance that is financed by the seller. (Nehemiah etc..) Oct. 1, 08
• Places a 12 month hold on HUD's implementation of risk-based premiums.

There are many other issues so visit Housing Recovery Act.

Good Luck