If you are interested in possibly purchasing a house there is some good news in store for you whether it is your first time purchasing a home or whether you are an experienced home buyer.  The extension of Fannie Mae, Freddie Mac and FHA loans to be set at higher loan limits was announced yesterday as the National Association of Realtors thanked Congress for their speedy action to extend the higher loan limits.  The increased loan limits were set to expire at the end of this year but Congress decided that it is in the best interest of buyers, sellers and the economy to extend the increased loan limits through 2010.   FHA, Fannie Mae and Freddie Mac loans will be increased to 125 percent of local median home prices and will have a limit of $729,750 in high-cost areas.   Congress and the National Association of Realtors are hoping that by extending the first time home buyers tax credit and extending the period of time to apply for an increased loan amount the real estate market will be able to fully rebound.

Congress decided on the decision to extend the increased loan limit for FHA, Fannie Mae and Freddie Mac loans earlier this week and the Senate plans on deciding on extending the first time home buyers tax credit and its provisions by the end of this week.   The proposed provisions for the extension of the tax credit includes an expansion of who can apply for the credit which will now include single filing individuals who make $125,000 or less and couples who make $225,000 or less and will be extended until April of 2010.

Those looking to take advantage of the first time home buyers tax credit once the extension is made and are interested in investing in a home may also be interested in applying for state grants (New York state grants for homebuyers | New Jersey state grants for homebuyers) if they are considering buying a home in New York or New Jersey.  Those considering purchasing a home in New York or New Jersey can now receive a free copy of our book “5 Myth that Can Ruin the Purchase of your Home”.  To request a copy of this no cost, no obligation real estate book click here.   This book was written by an experienced Staten Island real estate lawyer and looks out for the buyers interest in a real estate transaction.