FHA Update
Posted on November 30, 2007 |
The Expanding American Homeownership Act, H.R. 1852, know as FHA reform, was approved by the U. S. House Financial Services Committee on May 3, 2007. The bill now awaits a vote by the full House of Representatives and by the Senate. It will enable the FHA to reach more prospective borrowers and allow millions more low-and moderate-income families to achieve homeownership. I will continue to give you updates as I get them. I believe this will spark the Real Estate Industry.Some of the highlights of the legislation include:*Increase the loan limit up to 65% of the conforming loan limit. This would increase the FHA max loan to $271,000*Eliminates the FHA’s 3% minimum cash investment requirement and down payment calculation *Provides FHA borrowers a range of options to control the amount of their down payment and mortgage payment based on their immediate and long-term goals. This would include 100% financing options.
*Increases the maximum loan term from 30 years to 40 years which will help more people to qualify for more by decreasing monthly payments
*upfront mortgage insurance and monthly mortgage insurance will be based on borrower risk, including credit scores.
*Condominiums will be views as a single family rather than a multifamily project. This will make it easier to make FHA loans on condominiums.
These are a few of the highlights. I will keep you informed. Have a great weekend.
Dan “The Wizard” Farmer
Loan Officer
Peoples Bank
7579 West 151st Street
Overland Park KS 66223
Office: 913-897-2000
“Kansas City’s Ultimate Door to Home Ownership”