russglobal posted on September 27, 2008
Congress just recently introduced “The FHA Seller-Financing Down-Payment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694)”.
This Act eliminates a program known as “Down-Payment Assistance” on October 1st 2008, which is a vital piece of today’s lending guidelines. This basically means that as of 10/1/08, the notion of 100% financing as we know it will be no more.
The Nehemiah, an FHA loan, remained the only standard option for 100% financing. Additionally, lenders are tightening their lending restrictions and now requiring anywhere from 3-10% down for a primary residence purchase.
The Act revises the down payment assistance guidelines that we’ve know. As a benefit there are a few stipulations to makes it an option that’s available ASAP. Another upside is that right now is the best home-buying opportunity this country has seen in years. The guidelines tightened sharply and then retraced themselves in the mid 90’s. From there started the housing boom that last for nearly ten years.
Do you think that the real estate industry is in for another big boom soon?