FHA is modernizing with the help of the Senate and a bill passed just several weeks ago on December 14th. The Senate's plan would give homeowners the option of refinancing to an FHA backed loan and enjoy the peace of mind that goes with it.
As 2008 is just around the corner, let's get this bill in front of our president for signature. certainly, this is no time for partisanship.
This Senate bill raises the maximum mortgage the FHA can insure in high cost areas like California from $362,790 to $417,000 and be more in line with the conforming loan amount - the same level backed by Fannie and Freddie Mac.
The Senate bill will also lower the FHA downpayment requirement from 3% to 1.5% and hopefully encourage 1st time buyers to take advantage of this wonderful 'buyers market'.
Best regards, Michael Caruso