There has been talk of making changes, some say much needed changes, to the FHA loan program. Some of the items on the agenda are to eliminate the required downpayment (currently less than 3%), increase the loan limit, and make adjustments to the UPMIP based on risk factors. This passed the House and now goes before the Senate. We are all hoping for a quick and favorable outcome.
Below is the latest statement from HUD.
HUD No. 07-139
September 18, 2007
STATEMENT FROM HUD SECRETARY ALPHONSO JACKSON ON HOUSE PASSAGE OF FHA MODERNIZATION LEGISLATION
“Today’s vote in the House brings us one step closer to getting a comprehensive FHA Modernization bill to the President’s desk. While more work needs to be done, I’m grateful for the strong support that the President’s proposals received in the House, and I urge the Senate to take up its version as soon as possible so we can help even more Americans keep their homes. I also appreciate the leadership and support of Barney Frank, Spencer Bachus, Maxine Waters, and Judy Biggert to reform FHA’s mortgage insurance program.
The bipartisan reforms overwhelmingly passed by the House serve as a starting point to bring good news to families who need a safe, fair and affordable FHA alternative to the exotic subprime market. Now more than ever, Americans want financially sound mortgage options that won’t turn the dream of homeownership into a nightmare. With the bill approved by the House today, we estimate FHA will be able to help hundreds of thousands of borrowers obtain an FHA-insured mortgage in 2008.”