FHA to modernize
By admin | April 18, 2007
It looks as though there may be an out for borrowers from those risky loans they are signed into if the FHA does some repositioning. Currently the House Financial Services Committee is talking about revamping the FHA to alleviate the stress of the number of foreclosures in the subprime market.
Assistant Secretary for Housing, Brian Montgomery had this to stay about modernizing the FHA, “the most practical and immediate way to address the needs of a large number of troubled subprime borrowers.”
Foreclosure can not only put you out of your house but can also damage your credit which will not allow you to get a home loan for another home. The FHA is fully aware that it could help out and has a strong desire to keep these individuals of subprime loans in their homes.
The FHA’s modernization would help to increase loan limits and keep them from being priced out of too many markets. Currently many homebuyers can not obtain a FHA loan because of the restrictions on loan limits which takes them out of the range of their current housing market. The new legislation would also eliminate the three percent down payment currently required.
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