Actually some of these changes may be good ones!!!! It's the ongoing changes in the mortgage world!!
The Housing Financial Services Committee has approved a bill that would give the FHA more flexibility in adjusting its insurance premiums. FHA would like to increase the monthly premiums to .90% from .55% and reduce the upfront mortgage insurance premium to 1.0% from 2.25%. Raising the monthly premium would be better for the health of the FHA fund and safer for homeowners according to HUD. The House voted down raising the down payment to 5% from 3.5% and prohibiting financing of the upfront mortgage insurance premiums so that will help first time homebuyers. The Senate still needs to approve the House bill.
Fannie Mae annouced that it is reducing the waiting time for those borrowers that have completed a deed-in-lieu of a foreclosure. Previously, a borrower was required to wait 4 years before getting a new home loan. Now a borrower that completed a deed-in-lieu of foreclosure transaction can get a new home loan in 2 years, providing they have 20% down. With 10% down, the waiting period is still 4 years.
The House of Representatives passed a bill last week that reforms the Rural Housing Service's single family program, extending it through Sept 30th to prevent a shut down. Supporters hope the Senate acts quickly on this bill. The bill makes the RHS self funding by increasing the upfront guarantee fee to 4% from the current 2% requirement. This would allow lenders to offer the RD loans again with zero down.
Fannie Mae is extending a program through June 30th that allows buyers of distressed properties in its inventory a 3.5% rebate of the final sales price. The money can be used towards closing costs or selected appliances. The program began in January and was set to expire on April 30th.
