Monday, August 4, 2008

FHA Changes for 2008

The Housing and Economic Recovery Act of 2008 was signed by President Bush on July 30th but many people in the industry don't understand just what the changes are and how they will be impacted by them.

If those of us in the industry are confused just think how the consumer feels. Part of the problem is that there is so much information and it is hard to research because it is contained in many "ACTS" that were folded into the final ACT. Are you confused yet?

It may be the final ACT that means curtains for many of us. Sorry, that was really bad!

I have put together a page that covers what I have been able to unravel to this point. You'll find it here at Housing Recovery Act. I am still researching so that page will be updated as time goes by.

Here are some of the FHA changes and when they become effective:

  • Minimum down payment has increased to 3.5%. effective Oct. 1, 2008
  • Prohibits down payment assistance that is financed by the seller. (Nehemiah etc..) Oct. 1, 08
  • Places a 12 month hold on HUD's implementation of risk-based premiums.

There are many other issues so visit Housing Recovery Act.

Good Luck

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