President Bush Signs Housing Stimulus Package

President Bush signed a housing stimulus package yesterday that will provide a $7,500 first-time homebuyer tax credit for the purchase of any home between April 9, 2008, and July 1, 2009.

In addition to the first-time home buyer tax credit, the bill, H.R. 3221, will allow the Department of Treasury to purchase an equity stake in Fannie Mae and Freddie Mac, and would give the Federal Reserve a supervisory role over the two government-sponsored enterprises (GSEs).

H.R. 3221 also would:

• Modernize the Federal Housing Authority and permanently raise its loan limits;
• Give states authority to issue an additional $11 billion in mortgage revenue bonds;
• Reform the regulation of the GSEs and permanently increase the conforming loan limit to help buyers in high-cost markets;
• Enhance the Low Income Housing Tax Credit;
• Provide foreclosure relief; and
• Provide tax relief for homeowners who don't itemize their deductions.

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