FHA Loan UpdateA bill has been introduced recently that proposes the Federal Housing Administration require a 5% downpayment up from the current 3.5% buyers need to put down on an FHA home purchase.  There are several other items in the bill but this is by far the biggest change.  

Although it has a long way to go (through the house and senate, and then to the president) the bill has been introduced in Congress which increases the minimum down payment for Federal Housing Administration (FHA)-insured mortgages from 3.5% to 5%. Titled "The FHA Taxpayer Protection Act of 2009" HR 3706 would also prohibit financing appraisals, initial service charges, inspections, other fees or closing costs with any part of an FHA mortgage.

It's my hope that the bill get's shot down.  We need first time homebuyers if we are going to correct the housing market.  By keeping the minimum downpayment for FHA at 3.5% and also extending the first time homebuyer tax credit I think we would be taking a huge step in the right direction.   Of course my opinion is biased but in the big scheme of things the housing market is more important to the economic recovery than issues like executive pay and even health care for the time being.

 

The Truth About No Closing Costs
01/28/2009
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Here is the short and splenda on how no closing costs mortgages work When people hear or read "No Closing Costs, " the first thing they ask is, "HOW? " Especially in a declining interest rate environment I dont think it makes any sense (in most… more
But What If Mortgage Rates Get Lower?
01/17/2009
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That is the question I have been fielding from my clients for a month now. Don't get me wrong, it's a great question. But it leads many consumers into a state of "rate lock paralysis. " Many people don't want to lock a rate today out of fear that… more
Refinancing in a Declining Rate Environment
12/07/2008
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I am interested to hear what others in the mortgage industry are hearing from their clients about falling interest rates after they are already locked in. First of all I don't think it is wise to pay closing costs when refinancing so most my… more
I Think Lower Mortgage Rates are on the Horizon
11/24/2008
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Many consumers, savvy and otherwise are a little confused as to why mortgage rates are not lower than where they are. Today you can get a 30 year fixed rate mortgage at 5. 875% with no points and don't get me wrong that is a phenomenal rate… more
They Just Don't Understand Reverse Mortgages
11/18/2008
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Sorry I just had to post this. This was a comment I recently made on another blog People just don't understand reverse mortgages. Yes, THEY ARE NOT FOR EVERYONE! But what about that 75 year old couple who have maybe one or two children who are… more
NH and MA FHA Mortgages… The Best of What's left in Lending
11/13/2008
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The most common question I have been receiving lately from my clients is, "What mortgage programs are left? " Of course if you have excellent credit and a 20% down payment the world's doors are still open to you and just about any bank with money to… more
New Hampshire and Massachusetts Mortgage Rates
11/04/2008
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Many of my clients enjoy the mortgage rate lock advisory that is on my website and is updated daily as an RSS feed. Below is an example of today's mortage interest rate lock advisory and it can be found here: http://www. justinperry. net… more
FHA Mortgage Loans
10/27/2008
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It's interesting to see how many mortgage bankers are just now taking "FHA 101. " This is a great product that most likely could have been used in place of many sub prime loans but that would have required the borrower to actually document their… more
 
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Justin Perry

Portsmouth, NH

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Mortgage Banker

Office Phone: (603) 570-4897

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