Mixed blessing

The FHA Stabilization and Reform Amendment :

• Set the minimum FICO credit score for all new FHA-insured loans at 620 to better heed market standards

• Require a 20% down payment for newly insured FHA-backed loans for borrowers seeking a new mortgage within 7 years of a prior foreclosure
This is proposed legislation. On the one hand its going to make it even harder to get your buyers qualified. The last thing FHA should be doing is to make it harder to buy to buy. Pretty soon we will be a  nation of renters- renting from hedge funds.
On the other hand, when talking to a seller who is in foreclosure, it’s something to mention. Another reason they should sell to you instead of letting the bank take back their house and not being able to get a loan for 7 years.

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More fed meddling

In an effort to boost the housing market, the federal reserve has taken a new and unusual step. Instead of merely buying treasury bonds to lower mortgage rates, it is now going to buy mortgage backed securities. You know them- the toxic ones that caused the problem in the first place.

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