New Housing Bill signed into law July 30, 2008

President Bush signed the Housing Stimulus Bill Wednesday July 30, 2008. This new law is designed to provide mortgage relief for hundreds of thousands homeowners facing foreclosure and to assist the nations two largest mortgage companies, Fannie Mae and Freddie Mac. Under the legislation trouble homeowners could avoid foreclosure by trading the old loans for new more affordable loans through FHA. Your lender must agree to trade the loan, take the loss and and reduce the principal of the loan before you refinance. The Housing Bill also includes a credit of up to $7,500 for first-time home buyers for people who bought homes between April 9, 2008, and July 1, 2009. Although this rescue bill offers assistance to many of those facing foreclosure, one of the bill's components will affect many new homeowners by completely eliminating the down payment assistance program by September 30, 2008. This program has helped approximately 700,000 with the purchase of their first home. Many home buyers will be unable to get a loan without this assistance. This bill brings the hope that the worst of the housing crisis is coming to an end but is unlikely to by end of the year.