By Dean Tucker, Idaho Regional Manager, Waterstone Mortgage - Prime Equity Group
A new bill dubbed the "FHA Taxpayer Protection Act of 2009" (H.R. 3706) was introduced to Congress on October 1st 2009. The new proposed legislation would raise the current required 3.5% down payment on FHA loans - to 5%.
Federal Reserve Chairman Bernanke is posturing that he is in favor of the upped down payment requirement. The bill also prohibits the buyers closing costs to be financed into the FHA loan, again potentially raising the cash to close requirements for first time home buyers.
No reason for Realtors, sellers or buyers to panic yet, as this is a brand new bill only just introduced to congress. None-the-less an important topic, and a good one to keep an eye on.
Waterstone Mortgage - Prime Equity Group
Call us with any questions you have relating to residential mortgages (208) 287-1717, we are always very happy to help. We specialize in home loans for first time home buyers, move up buyers, second home purchases, and resort lending. The loan products available to my clients include FHA, IHFA, VA, Conforming Conventional, Jumbo and Super Jumbo Portfolio.
Our primary markets are Ada County (Boise, Eagle, Meridian, Kuna, Star), Canyon County (Nampa, Caldwell, Middleton), and Valley County (Cascade, Donnelly. Tamarack, McCall).
I don't see this one going anywhere anytime soon. I might even support it myself once the market stabilizes but I can't imagine very many members of Congress getting behind something that makes it significantly harder to sell houses right now.
Definitely a good thing to keep an eye on though.
Hi Julia,
I don't disagree that the higher down payment requirement might decrease FHA defaults, however if I had to guess our country's large unimployment figures are not helping the situation either. Personnaly I do not see this passing either.
Take care - Dean
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