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—Gives the Federal Housing Administration $300 billion in new lending authority and relaxes standards to provide affordable, fixed-rate mortgages to an estimated 400,000 debt-ridden homeowners. Any losses will be covered by an affordable housing fund financed by Fannie Mae and Freddie Mac, the government-sponsored companies that finance mortgages.

—Allows the Treasury Department temporary authority to lend money to Fannie and Freddie or buy their stock to avert a collapse of one or both of the mortgage giants. The authority expires on Dec. 31, 2009.

—Creates a new regulator and tighten controls on Fannie and Freddie, including power for the regulator to approve pay packages for company executives. Creates a new affordable housing fund drawn from their profits. Permanently raises the limit on the loans they may buy to $625,000 in the highest-cost areas. Allows them to buy loans 15 percent higher than the median home price in certain cities.

—Provides $3.9 billion in grants to the hardest-hit communities for buying and fixing up foreclosed property.

—Modernizes the FHA and allows it to back loans for riskier borrowers. Permanently increases the size of loans the agency may insure to $625,000 in the highest-cost areas. The agency can insure loans 15 percent higher than the median home price in certain cities.

—Prohibits the FHA from insuring mortgages in which the borrower's down payment is paid by the seller, beginning on Oct. 1, 2008. Places a one-year moratorium prohibiting the agency from charging premiums based on the riskiness of the homeowner, until Oct. 1, 2009.

—Provides $15 billion in housing tax breaks, including for low-income housing. Gives a credit of up to $7,500 for first-time home buyers who purchase residences between April 9, 2008, and July 1, 2009. Allows people who don't itemize their taxes to claim a $500-$1,000 deduction on their 2008 property taxes.

—Gives states an additional $11 billion in tax-free municipal bond authority for low-interest loans to first-time home buyers, construction of low-income rental housing and refinancing subprime mortgages.

—Offers protection from investor lawsuits for mortgage holders that modify loans to borrowers who are in default or about to default.

—Provides $180 million for pre-foreclosure counseling and legal services for distressed borrowers.

Are you a first time buyer?  Now is the best time to purchase a home in recent memory.  There is a lot of inventory to choose from, sellers are very negotiable and interest rates are still historically low-6.0% to 6.5%.  In addition, without a house to sell, you can usually offer a quicker settlement and thus get an even lower price.  Not to mention, there are huge tax incentives.  You can write off your mortgage interest and property taxes on your yearly income taxes.   Even if you don't have a ton of cash, there are programs available.

Are you a move-up buyer?  So the reality is that you may not get as much for your home as you thought or as much as it was worth a couple of years ago.  As an example, if you were to get 5% less for your current home than you thought but then purchase a bigger, more expensive home and got the same 5% discount on that home, in reality you would be coming out ahead.  As a move-up buyer, each person's situation is different, so it's important to contact me today and we can analyze your best move.  Take advantage of the deals out there and the historically low interest rates while you can!!