As expected, the omnibus housing bill was passed by the house yesterday. There’s all sorts of housing related fine print in this bill, but here are what we see as the key provisions:
1. Raises FHA required investment (down payment + costs) to 3.5%, from 3%.
2. Abolishes seller-funded down payment assistance on FHA loans credit approved on or after October 15, 2008.
3. Abolishes FHA risk based pricing (higher rates or fees for lower credit scores) on or after October 15, 2008.
4. Provides $7500 tax credit for first time homebuyers on homes purchased between April 9, 2008 and July 1, 2009.
Also worth noting: It is widely expected that Nancy Pelosi, Barney Frank, and Maxine Waters (a triumvirate of goofs if ever there was one) intend to introduce stand alone legislation to re-instate seller funded down payment assistance, and risk based pricing prior to the Oct 15th Deadline.
Next step for this Bill is Senate passage, and presidential signature, which should all happen in the next week or so.