The 700 page housing bill authored by Congress, and signed into law by President Bush last week contains a key clause that shall make Woodbridge homes LESS affordable for FHA buyers after September 30, 2008.
First, FHA loans are the hot, hot, hot loan program this summer because Congress took decisive action in the spring to radically improve the good ol' FHA loan.
The FHA loan has become the loan of choice for a huge chunk of of this year's buyers.
A key provision that has attracted teeming hordes of buyers to FHA loans is the low 3% down payment, plus programs that allow third parties to give qualified buyers the 3% down payment and get that buyer into the house with no money down.
If your FHA loan is not in underwriting by September 30, your down payment shall increase to 3.5%, and the third party 3% down payment contributions will be off the table.
More to follow...