The House Financial Services Committee approved a key FHA reform bill yesterday; however it did NOT change the minimum FHA down-payment from 3.5% to 5%; as was suggested by Rep Scott Garrett (R-New Jersey).
It is important that FHA remains strong and a viable option for so many home-buyers; buy raising the downpayment is likely only to hurt the housing market further. The hope is that they have dome enough to keep FHA afloat; without eliminating the 'good' home buyers.
Hopefully the bill has enough "teeth" in it to go after lenders whom are not following the guidelines properly. It says it will go after those found committing fraud... I guess we will see.
Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!
Office: 202-362-5800 Cell: 703.244.3971
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Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016