The "Expanding American Homeownership Act of 2007" was overwhelmingly passed in the House of Representatives, yesterday. This comprehensive bill to reform the FHA (Federal Housing Administration) is designed to revitalize this federally insured loan program. This measure will enable the FHA to help more subprime borrowers at affordable rates and terms. This means that our government is coming to the aid of buyers who have been forced to turn to predatory lenders in recent years.
A couple of the provisions of the bill allow for lower down payments for borrowers who can afford the mortgage payment but don't have cash for the required down payment, as well as funding for credit counseling for subprime borrowers who are late on their current mortgage payments. Additionally, higher loan limits for buyers in higher cost housing markets such as our area (Northern Virginia, Fairfax, Manassas and Prince William County).
The bill also directs FHA to refinance loans to existing homeowners who may loose their homes due to mortgage market conditions. Add this new bill to the Fed's directive to lower interest rates by 1/2 a percent (please see previous blogg for more info) and our housing market should begin to bounce back from it's current slump! So, if you have been contemplating buying, give us a call! Prices are as low as they are going to get! For additional information on the housing bill, just send an email, and I'll be happy to email ALL of the details. Peggy@BassetteHomes.com
Thursday, September 20, 2007
Subscribe to:
Posts (Atom)
