Welcome to the Knox County Board of Realtors!

Educate your Clients on how they can PROTECT THEIR HOMES and AVOID FORECLOSURES created by NAR CLICK HERE

Loan Limit Increases Pass House, Move to Senate

The House passed an economic stimulus package that includes an increase in the loan limits for Fannie Mae, Freddie Mac, and FHA. President Bush supports the bill, under which the FHA limit will increase to as much as $729,750 in high-cost areas (to 125 percent of local median home prices). This is a one year increase, pending final passage of FHA reform, which passed the House and Senate last year. The Fannie Mae and Freddie Mac conforming loan limits will be increased for one year up to $729,750 (from $417,000). The bill also allows a 50-percent bonus depreciation for leasehold improvements made in 2008 for the 2008 tax year. The remainder of the cost of the asset will be amortized over the remaining 38 years of the structure's life. The Senate is expected to consider the bill, H.R. 5140, with the loan limit increases, this week. NAR has a Call For Action in effect, asking senators to support the bill. Members can send a letter online. For more info contact Megan Booth, 202/383-1222 Courteous of NAR