FHA loan limit and downpayment change coming

By
Mortgage and Lending with Veterans United Home Loans NMLS #1907 NMLS# 261072
 Senate legislation to revamp the Federal Housing Administration mortgage program has finally moved out of committee and is expected to be passed in the next couple of days when it comes up for a full floor vote. The bill would reduce the required down payment on FHA-insured mortgages to 1.5 percent from 3 percent and open the program to pricier housing markets by letting the agency insure mortgages up to $417,000. With nontraditional mortgage originations on the decline, the FHA anticipates a surge in applications to 1.4 million this year from close to 680,000 in 2006. The bill, intended to provide borrowers with a less risky alternative to subprime loans, will qualify hundreds of thousands of minority and low-income borrowers for low-cost, low-down-payment loans backed by the U.S. government.  

Comments (4)

Jabin Norris
CENTURY 21 Anne Arnold - Holden Beach, NC
Centurion 08null, Broker/Realtor, ABR, SRS, e-Pro
That is great news to my ears.
Dec 19, 2007 01:09 AM
n d
Naoma Doriguzzi - Virginia Beach, VA
Great post Kevin!  This is good information for the customers.  Happy Holidays!
Dec 19, 2007 01:11 AM
Michelle Way
AVALAR Pro Realty - Jackson, MS
ABR, GRI, WCR
Thanks for the post this is really great news. Merry Christmas and Happy New Year
Dec 19, 2007 01:14 AM
Kevin Warren
Veterans United Home Loans NMLS #1907 - Virginia Beach, VA
It is great news and it will mean more ability to help people get in to houses!
Dec 20, 2007 04:52 AM