As a result of the passage of the economic stimulus bill (H.R. 1) which President Obama will sign into law this week the First Time Home buyer's credit has been increased to 8,000 and there is NO REPAYMENT PERIOD!!! This is for all homes purchased after 12/31/2008.  Look for introduction of a bill to increase the credit to 15,000 and to eliminate the payback for those buyers who purchased prior to 01/01/2009.

USDA Rural Housing Program has been resubsidized.  If you have buyers who qualify contact your mortgage reps to get these funds NOW as the 230 million allotted will be quickly spent.

Foreclosure prevention/mitigation will receive 50 billion which likely could be used to buy down loan rates to a level that homeowners can afford.  There are no details presently but expect to be required to pay back on this benefit within 5 years.  Other programs may come out of this funding that assist distressed homeowners.

Our Treasury department will be purchasing 200 to 300 million dollars of Freddie Mac and Fannie Mae loans and that may drive interest rates down slightly in the coming weeks.  Buyers should get off the fence and lock in now!!!