NAR chimes in about the FHA
By admin | April 20, 2007
Testimony continues today in the House Financial Services Subcommittee for Housing and Community Opportunity as the debate over two proposed bills to help alleviate subprime loan holders continues today.
National Association of Realtors spokesperson Iona Harrison, a Realtor(R) from Maryland, said, “Now is the time the country needs FHA. As subprime loans reset and real estate markets have cooled, a reformed FHA would be perfectly positioned to offer borrowers a safer mortgage alternative and help bring stability to local markets and local economies.”
Legislation proposing to increase loan limits, eliminate statutory down payments, flexibility in on risk-based pricing, and changes in the condominium program. Many are eagerly awaiting the proposed bills to pass into law.
The increase in FHA loan limits is set up to help first time home buyers and minority purchases who find it difficult to qualify for conventional mortgages and have to go through subprime loans. High cost areas will also be helped with a higher loan limit. Many of these high cost areas are currently shut out from getting a FHA Loan because of loan limits and the houses priced in their area.
“Increasing the loan limits can help firefighters, teachers and police officers buy a home in the communities they protect and educate,” Harrison said.
Availability of FHA Loans and their subsequent products has been a staple of opportunity for individuals regardless of race, ethnicity, or social characteristics during times of both economic prosperity and depression. These measures could help these individuals suffering from the negative subprime loan market.
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