Omnibus Bill passes through Congress
I received this from form one of my favorite lenders, Jeremy House with The Vision Lending Group, today and thought you’d find it interesting-
The key provisions of the Bill:
1. Abolishes seller funded down payment assistance on FHA loans that are credit approved on or after October 15, 2008 (SEE BELOW FOR MORE DETAIL ON THIS PIECE)
2. Raises the minimum down payment on FHA loans to 3.5%
3. Abolishes the credit risk based pricing - THIS IS A BIG PLUS - FHA has been hitting those with lower scores
4. Streamlines FHA condo approval process - ALSO A BIG PLUS
5. Provides a $7500 tax credit for first time homebuyers on homes purchased between April 9, 2008 and July 1, 2009 - VERY NICE!
6. New regulator for Fannie and Freddie with much broader authority - You will hear this called the “World Class Regulator”
7. FHA and Fannie/Freddie (conventional) loan limit would change to be the lesser of 115% of median home price or $625,000 when the current temporary limits expire at years end (calendar year). Fannie floor would remain at $417,000 - so no lowering of conventional loan limits
We are expecting the Senate to vote on this again this week. It should slide through unscathed and then head to the President. We are most likely looking at this becoming law in the next few days.
Of course this still has a way to go but it looks like they will pass it before their summer break. As a side note- this bill began as an Energy Bill, Funny how things change in government.
