This week the U.S. House of Representatives passed the  bill proposed by Representative Maxine Waters "HR 1852: Expanding American Homeownership Act of 2007".  The purpose of the bill, as stated on Govtrack.us is to   

"To modernize and update the National Housing Act and enable the Federal Housing Administration to use risk-based pricing to more effectively reach underserved borrowers, and for other purposes."

This bill passed the U.S. House of Representatives on September 18, 2007  and still needs to pass the Senate.  This bill will help homebuyers and sellers alike and help to ease the pressure off the real estate market.

Help for Homebuyers

The bill will help first time homebuyers purchase homes by raising loan amounts and allowing the Federal Housing Administration to make zero or low down payment programs (currently FHA mortgages require a 3% downpayment from homebuyers).  It will also allow FHA to consider more high risk clients for mortgages.

It will allow homebuyers in higher priced markets to consider FHA financing.  Before FHA's loan limit would not have been able to fund loans for housing in these higher priced markets.

The bill will also help to increase affordable housing by authorizing up to $300 million a year to be saved from the bill's excess profits for affordable housing.

Help for Homeowners

The bill will help homeowners by increasing funding for counseling homeowners who are delinquent on their loans or who have subprime mortgages.

It will assist seniors in getting reverse mortgages by raising loan limits and reducing closing fees.

Consult with a professional to see how this bill will effect your housing situation

For a full version of the current bill, you can go to Govtrack.us.  To find out how this bill will effect your current financing and housing needs contact your local real estate
agent or mortgage professional.

Posted by Rebecca D. Levinson

Read more ... http://connect2agentconsumers.typepad.com/homebuyerseller/2007/09/how-the-new-fha.html.