Senate Passes FHA Modernization Bill
December 14th, 2007
Related FHA Stories
Story Tools
The Senate today passed the FHA modernization bill, S.2338. The vote was 93-1.
The major points:
The maximum loan amount in the lower 48 states will be increased from to $362,790 to $417,000. This is the conventional loan limit. Previously the largest FHA loan for a single-family property was limited to 87 percent of the conventional loan limit.
The new and higher limit means the program will have greater utility in high-cost metro areas on both coasts. Also, borrowers with toxic loans above the current loan limit will also be able to refinance once the new measure becomes law.
The legislation, introduced by Se. Christopher Dodd (D-CT), requires a 1.5 percent down payment, a reduction from the current 3 percent requirement. The House version passed in September would allow FHA loans with nothing down.
The measure will now go to a conference committee to see if a compromise bill can be hashed out. A final bill, if any, would then go to the White House.
This entry was posted
on Friday, December 14th, 2007 at 11:26 am and is filed under FHA.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
RSS Feed
December 19th, 2007 at 12:44 pm
This will help many perspective homebuyers that otherwise would not have been able to purchase a home. FHA with Ameridream gift program has helped so many of our borrowers in the past. this will help many more in the future!!!! I look forward to reading all the details.
January 11th, 2008 at 2:31 pm
When can we hope to see FHA Modernization go into effect?
January 12th, 2008 at 12:23 am
Carmen –
Both the House and the Senate have passed versions of FHA Modernization. However, it is unclear when — if ever — the two bills will emerge from a conference committee.
As well, the passage of FHA moderniation is not necessarily a good thing. As the GAO reports, MIP costs would rise for many borrowers and some of those qualified today under the program would not qualify if modernation is passed.
January 28th, 2008 at 10:15 pm
Has anyone heard anything else about this? We’re waiting to re-fi under this and man the wait is getting longer and longer… I check everyday and haven’t seen any word about when/if this is going to happen.
Anyone? Anyone?
April 17th, 2008 at 10:50 am
Has anyone heard if the Reverse mortgage limit will be raised along with the standard FHA mortage amount?
Is it separate or included?