How Do I Take Advantage Of The American Housing Rescue And Foreclosure Prevention Act?

As the economy continues to struggle millions of homeowners across the country are facing foreclosure. In an effort to stem the rising tide of foreclosures, Congress passed the American Housing Rescue and Foreclosure Prevention Act. This act was designed to reform the different GSE and to provide middle class homeowners with the tools that they need to stop foreclosure. While this sounds promising how do you know if you can take advantage of this new program? Below are some of the different incentives to help you take advantage of this program, so that you do not loose your home.

One, tax incentives for the first time home buyer. If you are looking for a first time home you can qualify for the first time home buyer credit. This is where you will receive a will $7,500.00 tax credit for purchasing your new home. Two, it offers low income housing, during the current economic downturn the people who tend to suffer the most are the elderly and the poor. In many situations they do not have high mortgage rates quality fixed rate mortgages with a high quality interest rate. This will help many different low income people to find the right mortgage for their current economic situation. Three, it provides financial counseling, under the act congress is providing $230 million in financial counseling to help many borrowers understand how they can make their mortgage work for their situation and to educate the on other options they can do to avoid falling into the foreclosure process. Four, you must live in the property, this means that if you have a second, third home or investment property it would not qualify for assistance under this program. Five, if you are in danger of loosing your home you can qualify for an FHA refinancing. This is where the lenders will reduce the value of your home and interest rate in return for the difference being paid back to the Federal government when you sell your home.

Clearly the American Housing Rescue and Foreclosure and Prevention Act is designed to encourage people to purchase a home and stop foreclosures form taking place. Above are some of the different ways that you can take of this new program to purchase a home or refinance your existing one.