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1. •  
     CommentAuthorpatty_stevens
   • CommentTimeJan 4th 2007

    
   Major Points
   
   Would eliminate the 3% down payment minimum
   and would lengthen loan terms to 40 years in order to lower monthly costs to borrowers
   Would create a risk-based insurance structure to
   match premiums with credit profile of the borrower
   Would increase and simplify FHA’s loan limits
   
   Additional Points
   
   Permits FHA to put condos into the regular set of SF
   products instead of being a specialized product which
   is burdensome to maintain.
   Modernizes the manufactured housing program,
   eliminating "portfolio" insurance and reduces
   risk-based costs, and increases the loan limits to reflect the real cost
   Eliminates cap on number of HECMs that FHA insures
   
   Borrower Benefits
   
   Low- to moderate-income homebuyers would be prime beneficiaries
   FHA financing would be less costly for lower-income homebuyers
   Safer mortgage at a fair price
   Lower rates to credit-impaired borrowers
   Less chance of borrowers going “sub-prime” w/substantially higher interest rates
   Lower than market-rate with expensive private mortgage insurance
   
   FHA Benefits
   
   Allows FHA to remain relevant in today’s lending market
   Would return FHA to its traditional role as an important financing option in today’s housing market
   Would remove the barriers of outdated legislation and increase homeownership opportunities for millions of Americans
   Supports a society of ownership
   Still protects the soundness of the MMI Fund
   FHA expands the borrower pool, resulting in more business for everyone
   Increases homeownership opportunities for millions of Americans
   
   FHA was created in 1934 to give homebuyers access to reasonably priced mortgages under fair terms. Over the years, it has helped more than 36 million families become homeowners, and now it needs to be able to adapt to today’s marketplace. This legislation will bring FHA into the 21st century and offer hard-working Americans a variety of safe homeownership options at a fair price. HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities.
   
   The U.S. House of Representatives passed The Expanding American Homeownership Act (H.R. 5121) on July 25 by overwhelming vote of 415 to 7. The measure is now being considered in the Senate (S. 3535)
   
   Source: http://www.hud.gov/offices/hsg/fhareform/keypoints.cfm
2. •  
     CommentAuthornancy_m
   • CommentTimeJan 10th 2007

    
   wow.. that was very helpful.. thank you!
3. •  
     CommentAuthorsondra_sullivan
   • CommentTimeJan 13th 2007

    
   Thank you for the information. I used to do FHA loans all the time and have found myself doing less and less now that we have 100% sub-prime and My Community options. I can see it will be helpful to get myself familar with FHA again. Thanks