FHA News-House Panel Okays DPA Bill

The House Financial Services Committee has approved a bill that would allow nonprofit housing groups to continue to arrange downpayment assistance on Federal Housing Administration loans and give the FHA some latitude in pricing mortgage insurance premiums based on risk. The bill (H.R. 6694) would reverse provisions in a major housing bill Congress passed this summer that bans seller-funded downpayment assistance on FHA loans starting Oct. 1 and bars the FHA from using risk-based pricing for 12 months.

Fannie Freddie takeover- What it means to us now:

Interest rates took a SIGNIFIGANT drop today on the heels of the Fannie Freddie takeover announced by the Government over the weekend. This is a great opportunity to call past clients and connect with them, anytime you bring a higher level of service by saving your clients money, a client will remember you for years to come and reward you with referrals.

Energy Efficient, “Green Mortgages” Get a Boost Thanks to Housing Act and FHA ’s 203(k) Loan

As the use of an EEM Mortgages grows lenders are still offering a great mortgage that can be used for Green Improvements and also the rehabilitation of the home. Many foreclosed homes in the area are in need of major work due to the neglect of the property. The traditional EEM gave borrowers the opportunity to finance energy upgrades within a single mortgage and stretch their debt-to-income ratios, effectively allowing borrowers to qualify for a larger loan amount and a home with more green features.