TAKE ACTION

FHA Reform S. 2338
Ask your Senator to support FHA reform legislation this year. FHA reform will provide existing homeowners with secure and affordable refinancing alternatives and more mortgage options for first-time homebuyers. Increasing the supply of affordable mortgage money is a critical component for bringing stability to the nation’s turbulent housing markets.

In a nutshell, this reform will:
1. Reduce the required 3 percent minimum downpayment to 1.5 percent, and provide FHA with the flexibility to offer varying downpayment terms to different types of borrowers.
2. Increase the FHA high cost loan limit from $362,790 to the 2007 conforming loan limit of $417,000.
3. In non-high cost areas, the FHA limit would increase from $200,160 to $271,050 for single unit homes.

Freddie Mac/Fannie Mae (GSE) Loan Limits
Ask your Senator to support legislation that allows regional increases to the Freddie Mac/Fannie Mae loan limits and stress the need for quick Senate action on this vital reform. This change will make lower-cost GSE mortgage financing available to more families trying to buy homes in high cost areas and increase the supply of mortgage money.

The main points f the Freddie Mac/Fannie (GSE) Loan Limits are:
1. Freddie Mac/Fannie Mae conforming loans are not readily available to homebuyers in the nation’s high cost metropolitan markets.
2. The 2007 Freddie Mac/Fannie Mae loan limit cap of $417,000 is well above the national median sales price of $220,800 for single family homes and exceeds the local median in most housing markets, BUT it is consistently well below the local median in high cost areas.
3. Increasing the Freddie Mac/Fannie Mae loan limits will also help inject more mortgage money into the market.
4. Increasing the loan limits will help boost the national homeownership rate.

Source: National Association of Realtors. Take Action: http://takeaction.realtoractioncenter.com/campaign/fha_gse_reform/explanation