As lending guidelines continue to tighten, the government has made their move in helping. On December 14th, the senate passed the ‘FHA Modernization Bill of 2007’. The bill is targeted to help extend credit to more Americans that need it. With subprime loans becoming extinct, FHA is a popular replacement for that market segment.
S. 2338 proposes a few couple improvements to extend credit to those who need it more. Specifically those improvements are:
- In the lower 48 states, loan limits will increase from $362,000 to $417,000.
- Reduction of the down payment requirement from 3% to 1.5%.
The FHA Modernization Bill is still waiting to voted in the house. It passed in the senate 93-1 on December 14th.
For a quick reminder on how this process works, here’s a fun run-through:
You can track the FHA Modernization Bill through GovTrac.us.
