FHA reform

Last Friday, December 14th, the Senate passed a bill that would modernize FHA mortgages. This bill increases the maximum amount of an FHA loan from $362,790 to $417,000 in the lower 48 states. This greatly helps people in places with a high cost of housing where people applying for a loan might not qualify for a conventional loan because of their credit score. This bill also reduces the required down payment from 3% to 1.5%. The House passed a similar bill in September that eliminated the down payment requirement. The bill will now go to a conference committee in order to form a compromise bill. Then, a final bill will go to White House.