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Gary Legaspi

H.R. 1852 Increasing FHA Loan Limits...Good or Bad for the market?

Excerpt from an article on Searchlight Crusade website by Dan Melson ept 18, 2007

"House passes HR 1852. This raises the limit for FHA mortgages, appears to lower equity requirements (to less than zero) in certain circumstances, lowers their mortgage insurance ceiling. It also lowers the credit score minimum, and prohibits failures to pay from being reported to credit reporting agencies."

http://www.searchlightcrusade.net/2007/09/news-from-the-front-house-pass.html

My initial reaction to the "American Homeownership Act of 2007" is that it will help deserving homebuyers can now afford to purchase a home in California.  After reading the above mentioned article, I see how others may have reservations about it.  It passed the House but has only been introduced in the Senate on 9/19/2007.  What do you think?  You are more than welcome to post your comments on this subject.

 

Published Wednesday, November 28, 2007 10:13 PM by Gary Legaspi

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JR said:

I'm excited about this program!  This will help thousands of people that need to refinance and get into a better loan. This will also help with the liquidity crunch, because this program will enable borrowers to keep there homes and get into better circumstances.  

November 29, 2007 7:09 PM
 

Mike said:

I agree.  I think that this program is less vulnerable to abuse than the past conventional loan programs of the past.  FHA guidelines although a little more lax are not flexible.  The Conventional Loan Programs that had "No Income Verification" were too flexible and allowed the "No Common Sense" approval are the reason for many homeowners woes these days.  I don't think that the FHA program will allow those types of applications to be approved.

November 29, 2007 10:42 PM

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