The Republican led House Financial Services Committee has drafted legislation that would, among other things, raise the FHA down-payment requirement to 5 percent and prohibit borrowers from financing their closing costs.

The draft legislation, ‘‘FHA-Rural Regulatory Improvement Act of 2011'', was discussed today in a House Subcommitte hearing entitled "Legislative Proposals to Determine the Future Role of FHA, RHS and GNMA in the Single-and Multi-Family Mortgage Markets".

Full story at Mortgage News Daily

 
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4 Comments on OUCH!!! The House wants to raise the FHA Down Payment!!!!!

MAY
25
2011
Called Shot Master

Well if it passes I guess we will learn to work with it.  It may take buyers a bit more time to save the additional funds, however it could slow sales down. 

6:56pm • #1
242,684 Points 2 Featured Posts Outside Blog Attended Rain Camp

They have the guts to do this and they have no idea what is going on. But at the same time, the banks screwed up and we bailing them out.

7:03pm • #2
1,068,429 Points 69 Featured Posts Outside Blog Called Shot Master

Not a good idea...think they forgot....again....to ask the people they represent if the pendulum keeps swinging too far in the other direction what that will mean to the housing market.

7:13pm • #3
627,500 Points 8 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

This would most likely slow the economy even more.  But on the other hand, if buyers had to put more sweat equity into their homes, they might not walk away as fast.  It's a two sided sword.

9:23pm • #4


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Bill Ladewig Your FHA Guru - FHA and VA Loans Since 1970

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