2010-09-09T02:51:50-06:00 http://mortgageprocessor.org/loan-processing/ Lussumo Vanilla http://mortgageprocessor.org/loan-processing/comments.php?DiscussionID=41&Focus=87#Comment_87 2007-01-04T20:00:24-07:00 2010-09-09T02:51:50-06:00 patty_stevens http://mortgageprocessor.org/loan-processing/account.php?u=5

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 ...

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Would remove the barriers of outdated legislation and increase homeownership opportunities for millions of Americans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]]> http://mortgageprocessor.org/loan-processing/comments.php?DiscussionID=41&Focus=101#Comment_101 2007-01-10T09:06:26-07:00 2010-09-09T02:51:50-06:00 nancy_m http://mortgageprocessor.org/loan-processing/account.php?u=4

wow.. that was very helpful.. thank you!

http://mortgageprocessor.org/loan-processing/comments.php?DiscussionID=41&Focus=111#Comment_111 2007-01-13T09:42:58-07:00 2010-09-09T02:51:50-06:00 sondra_sullivan http://mortgageprocessor.org/loan-processing/account.php?u=132

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 ...