Congressional leaders came to an agreement this past week on a stimulus package created to boost the economy and prevent a possible recession. The proposed package will give individuals who pay income tax up to $600 and working couples up to $1200. Couples with children will get an additional $300 per child. Individuals who do not make enough to pay income taxes and make at least $3000 will get up to $300.

The package also includes FHA & GSE reform, raising the limit from $362,000 to $725,000 in high-cost areas. Freddie Mac and Fannie Mae caps will be increased from $417,000 to $725,000 as well.

NAR president Richard Gaylord commented: "NAR is pleased that the House of Representatives, along with President Bush, presented a bipartisan economic stimulus package today that includes important housing provisions. NAR has been actively advocating for many months FHA reform and increasing the conforming loan limits for Fannie Mae and Freddie Mac."

The stimulus package announced today is a positive step toward strengthening the housing market and our economy.  The increase in loan limits should provide liquidity to the market in all parts of the country allowing qualified home buyers who may have been on the sidelines to enter the market. The Stimulus package still needs to make it through the Senate, but everyone is hoping to get the rebate checks out as soon as possible.