Higher FHA down payments

By
Services for Real Estate Pros with Scanlon Signing Services

The House Financial Services Committee is proposing an increase in FHA down payments. The current down payment for an FHA mortgage is 3.5% and they want to increase this to 5%. The FHA Rural Regulatory Improvement Act of 2011 would also prevent borrowers from rolling the closing costs into the loan. This would severely limit first time home buyers.

Representatives of the Mortgage Bankers Assoc (MBA), National Assoc of Realtors(NAR), and the National Assoc of Home Builders(NAHB) all have testified opposing this new legislation. This draft legislation does not have a bill number yet but is presently being reviewed and debated. I will keep you updated on any new findings.

Sincerely,

Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com

Comments (2)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Congress has been floating this for 3 years.  Sooner or later. . . . . .

Jun 13, 2011 11:54 PM
Gary Pike
Better Homes and Gardens Real Estate Metro Brokers - Powder Springs, GA

Why is it that REALTORS are against anything that would make a buyer have more skin in the game?  Yes it may be harder for some to qualify for loans but as we are all experiencing that may not be such a bad thing.

Jun 14, 2011 01:40 AM