The new Housing bill was approved by the House of Representatives yesterday and is expected to move through the Senate as well as the President by as early as next week.
Here are the major components:
FHA Changes
Mortgage limits for high cost areas will be increased to $625,000 on a permanent basis (115% of the current conforming limit).
The FHA floor will go from 48% to 65% of the current conforming limit. This will put the new permanent floor at $271,000.
Cash downpayment is set at 3.5%.
The seller funded down payment assistance program (DPA) will be terminated on September 30.
The risk based premium established by HUD last week will be suspended on September 30. The ceiling on upfront premiums will go to 3%. It was 1.5% just months ago….
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