Q&A Economic Stimulus Act and FHA Loans

Question: I've been hearing a lot about the Economic Stimulus Act of 2008. One section mentioned that the limits for FHA loans have been raised in some areas. Can you tell me more about this?

Answer: The Economic Stimulus Act was signed into law in February 2008. It temporarily increased loan limits for FHA fixed rate mortgages above the standard or "conventional" limit of $417,000.
The reason for this increase was to make home ownership more affordable in high cost areas where housing is particularly expensive. California and Hawaii are two states with FHA designated high-cost areas.
If you're planning to buy a home in a high cost area this year, or are considering refinancing your adjustable rate mortgage , these "FHA Jumbo" loans could save you a considerable amount of money. This is because FHA loans generally offer low interest rates than non-FHA loans. You'll also enjoy lasting peace of mind, as the loans fixed rate won't go up for the life of the loan. And if you're buying a home, you can take advantage of FHA loans' down payment options.
This temporary increase expires December 31, 2008, so contact me today to find out more.

source: Andrew Becher, MetLife Home Loans

Home Improvements That Pay

Many big home improvement projects - once thought to be largely recouped upon sale - are losing some of their value as the real estate market continues its slump. Here are some projects that are still returning much of their original cost.

• Curb appeal projects such as new vinyl or fiber cement siding, as well as new windows are bringing higher returns than before.
• Local and regional trends matter. Backup power generators are a better investment in the Southwest than in the Northeast, for example. Consult real estate agents and appraisers and go to open houses to get the best sense of what improvements pay in your area.
• Some projects can lower your insurance bill. Electrical and plumbing upgrades, for example, can lower rates by 10% to 20% - see if your insurer offers discounts for wind, hail and fire resistant roofing; water leak detection and shut off valves; hurricane shutters; seismic gas shut off valves; backup generators; and central station burglar and fire alarms.
• Hire a home inspector and make any necessary repairs first. In many states it is illegal to conceal defects.

sources: NAR: Remodeling magazine; Chubb Group of Insurance Cos.; Burns & Wilcox