H.R. 3221: Foreclosure Prevention Act of 2008

This bill will provide for a temporary, $7,500 first-time homebuyer tax credit for the purchase of any home, purchased between April 9, 2008, and July 1, 2009.
In addition to the first-time home buyer tax credit, the bill would 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.
• Bill also eliminates all seller funded down payment assistance programs
• Increase buyers investment using FHA financing to 3.5%


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