This maybe somewhat boring but there is a lot of confusion out there.

HR BILL 1852

• Max FHA loan limit set at the lower of (a) 125% of the local area median home price or (b) 175% of the GSE conforming loan limit.  Provides additional authority to HUD to raise limits additional $100,000 if market conditions warrant.  Floor raised from 48% to 65% of the GSE conforming loan limit
• Loan term extended to 40 years
• Establish underwriting standards for "higher risk" borrowers with FICOs below 560
• Raises the Upfront MIP to 2.25% for standard risk and 3.0 for higher risk and zero down
• Establishes lower or zero down programs
• Foreclosure counseling
• Limits origination fees to 1.5%

S 2338 Senate Banking Committee

• Max loan to be lesser of (a) 100% local median home price or (b) the GSE conforming limit
• Requires min 1.5% down payment and prohibits seller funded down payment assistance from providing any of the required down payment
• Upfront MIP rasied to 3% and 2.75% for first time home buyers with approved homeownership counseling.

Both bills require a lot of "quality control" and review. They both also call for many different pilot programs.  The powers that be in Washington need to iron out the differences in the 2 bills.  (I have only highlight a few, there is over 4 pages of differences. The Senate bill looks more scaled back than the house version.

I encourage all of you to write your elected officials and get o ff  their buttocks and have them get this done!

In my local markets we just petition HUD and got the limits raised in Mesa County to $282,000.  We are hoping for the same in Montrose and Delta Counties.