On Tuesday President Bush signed a $168 billion economic stimulus package intended to provide “booster shot” for the economy. Included in the plan are approximately $117 billion in rebate checks and tax breaks for businesses as well as an increase in the FHA loan limit.

The increase in the loan limit is meant to help the sagging subprime housing market, which has taken substantial hits in recent months due to the fallout of predatory lending practices of many lenders. By increasing the loan limit FHA loans become a viable option for potential borrowers in high cost areas.

Previous to the bill’s signing the FHA loan limit was around $200,000 to $360,000 depending on the area. Now borrowers in high cost areas will be able to take advantage of FHA loans as high as $729,750, a substantial increase. Rebate checks are expected to begin being sent in May in order to boost third and fourth quarter spending.

Rebates will be as high as $600 slightly less for those making more than $75,000 a year.

Small Business (SBA) Loans have been a fixture of the American landscape for over 50 years now.  Thanks to the government-sponsored SBA, countless Americans have been given the opportunity to launch their business ideas with appropriate funding.  The SBA has numerous programs that are catered to help find a solution for just about every type of business and every type of financial situation.

If you’ve been thinking about launching a business and working for yourself, take a moment and browse through the options the SBA offers or head down to your local bank and see what literature they have on the SBA.  Small business loans are designed to allow the business owner to cover necessary business costs (and more), and come with low interest rates and flexible re-payment options.

There truly is a solution for every situation when it comes to the SBA.   Make it work for you today.

The Office of Federal Housing Enterprise Oversight, or OFHEO, recently announced that the conforming loan limit for a FHA loan would not be reduced for 2008.  This is excellent news for the FHA loan community and potential borrowers.

Some in the industry speculated that the decreased home prices due to the hit the housing market took would result in the conforming loan limit being reduced from $417,000.

For most of the country lowering this limit would not make much of a difference in their ability to buy a home.  However, in larger markets like New York, Chicago, and Southern California, where house prices are substantially higher, even after slumping prices, lowering the conforming loan limit would make for a bleak 2008.

The conforming loan limit is the most that a FHA borrower can obtain and lowering this would cause a lot of problems for potential buyers in areas with higher cost of living.   If FHA modernization bills pass in Congress, with advents of no money down FHA loans as well as higher conforming loan limits in certain areas, buyers may get even more of a boost.