I read a lot of mortgage industry blogs. A lot.
After finally cleaning out my feed reader, I found a great post from Alex Stenbeck’s “Behind The Mortgage“. I provided the entire breakdown of the new bill, but Alex does such a great job of cutting through the language and picking out the few points that really impact Americans. Here’s his original post and here’s what he covered:
1. Raises FHA required investment (down payment + costs) to 3.5%, from 3%.
2. Abolishes seller-funded down payment assistance on FHA loans credit approved on or after October 15, 2008.
3. Abolishes FHA risk based pricing (higher rates or fees for lower credit scores) on or after October 15, 2008.
4. Provides $7500 tax credit for first time homebuyers on homes purchased between April 9, 2008 and July 1, 2009.
The other thing he pointed out (which I had not heard anywhere else…) was that Nancy Pelosi, Barney Frank, and Maxine Waters are planning on introducing a seperate piece of legislation that would bring back seller funded down payment assistance AND the risk based pricing (lower credit score = higher rate). Wow. How did that slide past everyone’s radar?
Still Waiting…
We’re still waiting for the Senate to pass the bill. Then it goes to Mr. Bush for his signature. There still aren’t many people thinking this won’t pass. But it’s not as much of a rush as everyone else thought before (apparently).
Related Posts
New Bill Might Save Down Payment Assistance – Bill H.R. 6694
Mortgage Calculator for FHA Loans with 3.5% Down
New Bill May Eliminate Down Payment Assistance (DPA)
Mortgage Calculator for Conventional Loans with 5% Down
Will DPA Be a Part of the Financial Bill to Save Wall Street?
FHA Modernization Bill – S.2338
