Good Affordable Florida Home Loan News? FHA Looks into Reforms

On one hand, there’s troubling news for those seeking an FHA Florida home loan: the IRS is considerating eliminating the down payment assistance program.

On the other hand, there’s positive news for lower-income families in need of mortgage help: An FHA reform package was approved in a mark-up vote this week by the House Financial Services Committee, led by Congressman Bob Ney (R- Ohio) and Congresswoman Maxine Waters (D-Calif.).

H.R. 5121, the Expanding American Homeownership Act of 2006, would accomplish the following goals:

• Raise FHA loan limits
• Eliminate restrictive down payment requirements
• Provide risk based mortgage insurance premium flexibility
• Extend the possible terms of FHA Florida home loans from 30 years to 40 years

“The Expanding American Homeownership Act will make FHA a more viable tool for first-time home buyers and lower and moderate income families and many others pursuing the dream of homeownership. It is also the most substantive FHA reform legislation undertaken by Congress in over 15 years, ” aid Congressman Ne. “Not only will hundreds of thousands of additional families have the opportunity to own their own home, but this legislation will improve FHA’s relevance and competitiveness in the housing market.”

More positive FHA reform reaction

“On a typical loan, these changes will save many families hundreds of dollars per month - opening the door to the American Dream for thousands,” said NAR President Thomas M. Stevens. “We commend the House Financial Services Committee for taking this important step to make FHA once again competitive in the home mortgage arena. With interest rates climbing and housing prices at all time highs, it is imperative to have a modernized, effective FHA pro

A new NAR-sponsored coalition is expected to become an advocacy force for the housing market. The coalition’s mission is to ensure FHA reform is enacted and that it becomes a competitive option, thereby ensuring the availability of reasonable Florida mortgage loans.

NAR and its Coalition for a Strong FHA partners urge House Members to cosponsor this legislation and urge the House leadership to schedule time for House floor consideration as quickly as possible following the Memorial Day recess.

The possibility of longer-term Florida home loans is that these mortgages would allow for lower, easier payments to be made each month.