The president signed into law the Housing and Economic Recovery Act of 2008 aimed at brining stability to the current market by curbing the amount of outstanding foreclosures. The plan will be managed by the Federal Housing Administration (FHA) which will guarantee new loans for homeowners looking to refinance into 30 year fixed loans. These refinanced loans will not be allowed to be for more than 90% of a home’s current appraised value, so the lender would have to write off the difference in order to qualify for the new mortgage. However, if the home then goes up in value, the owner shares the gained equity with the FHA. FHA loan limit has also been raised to $625,500 which will help borrowers refinance larger loans with the FHA benefits. The program begins October first, and ends September 30^th 2011.