Here are some of the key provisions of the Housing and Economic Recovery Act

Rhonda Duffy

Buyers if you are planning on using any of this financing, know that there is a deadline now.

View the Summary of the Housing and Economic Recovery Act here.

-Higher permanent loan limits for conventional conforming and FHA will become effective Jan. 1st, 2009; the Act calls for limits to increase to a maximum amount of $625,500, depending on the metropolitan area. Note: The temporary limits established in March will expire on Dec. 31, 2008.

-The VA guaranty will increase

-Minimum cash investment for FHA loans will increase to 3.5%

-A moratorium on risk-based pricing for FHA loans will go into effect Oct. 1, 2008.

-Seller-funded Down Payment Assistance Programs with FHA loans will be terminated Oct. 1, 2008.

-Up to $7,500 dollar Tax Credit for First Time Home Buyers.