By Dean Tucker, Idaho Regional Manager, Waterstone Mortgage – Prime Equity Group in Boise Idaho
A new bill dubbed the “FHA Taxpayer Protection Act of 2009″ (H.R. 3706) was introduced to Congress on October 1st 2009. The new proposed legislation would raise the current required 3.5% down payment on FHA loans — to 5%.
Federal Reserve Chairman Bernanke is posturing that he is in favor of the upped down payment requirement. The bill also prohibits the buyers closing costs to be financed into the FHA loan, again potentially raising the cash to close requirements for first time home buyers.
No reason for Realtors, sellers or buyers to panic yet, as this is a brand new bill only just introduced to congress. None-the-less an important topic, and a good one to keep an eye on.
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