The FHA Revitalization Bill, now working its way through Congress with the president’s strong support, will empower the Federal Housing Administration to make changes that will open the door wider to families wanting to purchase their own home. It will create more affordable housing nationwide.
Key provisions in the bill will include providing FHA with flexible authority to introduce new products and program changes, such as flexible down-payment programs. It will also increase FHA loan limits in high-cost areas. And it will allow improvements to be made in the FHA Home Equity Conversion Mortgage (HECM) Program.
“FHA has the potential to expand homeownership to underserved consumers, especially first-time buyers, minority and low-income borrowers,” said Regina Lowrie, chairperson of Mortgage Bankers Association. “These changes will put FHA back on track to achieve its mission of facilitating affordable housing for Americans.”
The changes incorporated in this new legislation, coupled with the widening range of new conventional mortgage plans now available to consumers, will be a big help in making homeownership achievable for many more families in the months and years ahead. As always the FHA loan rates are considered to be the lowest they have been in some time and FHA mortgage rates have been favorable for the past few months.