Thursday, October 8, 2009
Raising the downpayment on FHA loans to 5%
9:34 AM | 
Posted by
Jim Drader
I was reviewing my Alerts last night and stumbled upon this gem( http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.3706:) which is a new bill sitting in the House Financial Services Committee. This bill if it continues would require an increase in the downpayment required on FHA loans from the current 3.5% to 5%. I am sure that everyone that does not live under a rock would view this as possibly the worst thing that could be enacted in this current economic environment. A FHA loan is perhaps the only way a first time homebuyer can afford to buy a new home. Lets hope that this bill gets stuck in committee, insert the school house rock music at this point.
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2 comments:
Have to agree Jim, terrible idea. If FHA is solvent now, at 3.5% and MIP, why raise the down payment required? As a matter of fact, i could suggest they are making better money now then they were during sub-prime because they have the entire market to themselves.
As I was reading the title first I was like, why do they have to do that? That's quite an expensive down payment for a certain loan deal. But later have realized that the increase on APR isn't that too bad, in fact this has a few benefits that you might be happy of applying.
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