FHA reform

The Senate Banking Committee passed legislation last week to reform the restrictions on FHA loans, making it even easier for home buyers to get an FHA loan instead of a riskier alternative. This would increase maximum loan amounts, which helps buyers who are looking in high-cost locations, but may have credit issues that prevent them from getting a conventional loan. The National Association of Realtors has been encouraging Congress to modernize FHA by increasing loan amounts and reducing or eliminating the required 3% down payment. We are now waiting for the House and the Senate to finalize this legislation and are hopeful that it will go into effect by the end of the year.