Miami FHA Mortgage Changes For 2009

2008 was a year that brought many changes, Miami Real Estate declined by as much as 60% in some areas, lenders went out of business, a plethora of people are loosing their homes, and now we are in a Global Recession.

In 2008 the Congress and the Bush Administration passed the Housing and Economic Recovery Act of 2008. This Act was supposed to stmulate the economy by allowing those who have larger loan amounts that do not fit into the Conventional or FHA loan limits, qualify for a Conventional or FHA loan. This ACT also included several changes to FHA financing, such as an increase in down payment from 3% to 3.5%, prohibited the down payment assistance programs by those that have financial interest in the sale (i.e. sellers), created a $7,500 dollar tax credit for first time home buyers (repayble over 15 years), and created a refnance program that would allow lenders to write down qualified mortgages to 85% and they would create a new FHA fixed rate mortgage at 90% of the curren value. This program is know as Hope for Homeowners or H4H and since it's inception on October 1, 2008 not one closing has been documented. It is clear to say that th Hope for Homowner program was hopeless.

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