New Legislation Brings FHA Loans Back Into Forefront
On July 26th, 2006, the U.S. House of Representatives voted to increase the scope and powers of the Federal Housing Administration by approving “The Expanding American Homeownership Act.” At MortgageLoanPlace.com, low- and middle-income individuals can make the most out of these changes. Even if applicants have tried to get an FHA loan before and failed, these improvements to the program are so broad and powerful that anyone should consider trying again.
(PRWEB) September 5, 2006 -- On July 26th, 2006, the U.S. House of Representatives voted to increase the scope and powers of the Federal Housing Administration by approving “The Expanding American Homeownership Act.” At MortgageLoanPlace.com, low- and middle-income individuals can make the most out of these changes. Even if applicants have tried to get an FHA loan before and failed, these improvements to the program are so broad and powerful that anyone should consider trying again.
With this new legislature, the FHA will be able to regain its rank as a powerful force in providing millions of Americans will the opportunity to fulfill the American dream of homeownership. For citizens in the middle and lower classes, this bill will make FHA home loans and FHA Refinance a much more practical option for financial aid in the purchase of a home. Mortgage Loan Place seeks to make the best out of these new opportunities, and looks forward to providing Americans with possibilities that were once unavailable.
One of the ways this new bill makes homeownership more feasible is by removing the previous minimum down payment of 3%. Now, FHA can offer many different down payment options, including those that would be 2% or less, a much more competitive figure. Additionally, whereas the FHA previously had a standard premium amount for all borrowers, this system will be changed and be made risk-based, so that low-risk borrowers pay less than the high-risk borrowers.
Also changed by “The Expanding American Homeownership Act” are the FHA’s loan limits. In high-cost areas such as southern California, the FHA’s previous loan limits were essentially unusable for a potential low-income home buyer. Now, limits would rise from 87 to 100 percent, giving Americans in urban locations a better option for homeownership.
Homeownership is now a possibility even in high-cost areas, and MortgageLoanPlace.com is ready and willing to answer any and all questions related to the program.
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