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Showing posts from December 9, 2007

New FHA Guidelines for Loans

WASHINGTON – Dec. 14, 2007 – Hundreds of thousands of minority and moderate-income home buyers would become eligible to get low-rate, low-down-payment mortgages insured by the federal government under an agreement struck yesterday in the Senate. The measure, which had been held up by a lone senator, Republican Tom Coburn of Oklahoma, is expected to get a full floor vote today or Monday. It would greatly expand the Federal Housing Administration’s mortgage insurance program that helps people with questionable credit get low-interest home loans. The delay of the bill drew the ire of the Bush administration and House lawmakers on both sides of the aisle, as the pressure increased on the federal government to address the worsening mortgage crisis. The House passed its version in September, 348 to 72. The legislation aims to draw people away from subprime loans, which offer low “teaser” rates that can jump as high as 11 percent after two or three years. By the summer of 2010, about 600,000