FHA is going to expand the number of mortgages they will make to help out homebuyers. The Senate is likely to pass a bill that would raise the FHA limit to $417,000 and lower the down payment to about 1.5% from 3%. The House also has a bill which would raise the FHA limit to $730,00 and lower the down payment from between zero and 3%.  "Raising FHA limits is long overdue", Schumer, a New York Democrate who heads the Senate Banking subcommitte on housing said in an interview.

This is Great news for home buyers and for homeowners who need to refinance. I will let you know when it is offical and what the exact limits are and the down payments.

For further questions please contact me at (800) 552-1188.

Thank you,

Lynne Dewar

Sr. Mortgage Consultant