WASHINGTON -- The House passed a sweeping housing bill Wednesday that President Bush could sign as early as this week, easing some of the market's problems, but providing only modest benefits for homebuyers or borrowers facing foreclosure.

After months of negotiations between House and Senate lawmakers and the Treasury Department, President Bush dropped his opposition. While the bill was widely praised by real estate industry groups, doubts remained about how much real-world impact it will have for consumers.

"This isn't going to be the catalyst for a better housing market," said Mark Zandi, chief economist at Moody's Economy.com. "It may staunch some of the downturn, but it's going to have a very modest positive impact."

The highlights of the bill include: $300 billion to provide more affordable mortgages to troubled homeowners, nearly $4 billion in grants to help communities fix up foreclosed properties and a $7,500 tax credit for first-time homebuyers.

Andrew Lenz, a 27-year-old first-time buyer in Minneapolis, said the tax credit won't affect his decision to make an offer soon on a foreclosed townhome, but added, "Every little bit helps."

And plenty of first-time buyers won't get help.

The tax break only applies for homeowners who purchase between April 9, 2008 and July 1, 2009. The full amount of the credit also is only available for individuals with incomes under $75,000 or couples earning less than $150,000.

Moreover, it will have to be paid back, interest-free, over 15 years.

In Baltimore County, Md., where foreclosure filings between January and March were running at nearly four times last year's levels, Liz Glenn was grateful to see the provision in the bill for $3.9 billion in grants to help local governments buy and fix up empty homes.

The money "would enable us to acquire and rehab more homes and offer them at an affordable price," said Glenn, a community planning official.

The county, which surrounds Baltimore's city limits, currently works with nonprofit developers to fix and sell up about 20 homes a year -- nowhere near enough. Maryland estimates it could receive about $30 million in funding as part of the bill, said Carol Gilbert, a state housing official.

Cash-strapped homeowners, who are spending more than 31 percent of their income on their house payment, may qualify for a new, more-affordable loan backed by the Federal Housing Administration under the bill.

Lenders, however, would have to agree to take a loss on the existing loans, and would walk away with at least some payoff and avoid the costly foreclosure process. Lender participation is also voluntary.

"The industry really has to step up and use it," said Bruce Dorpalen, director of housing counseling for Acorn Housing Corp.

In addition, homebuyers who purchase a property with an FHA loan will no longer be able to receive financial assistance from the sellers. The bill closes a loophole that let sellers channel money to buyers through charities.