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The Federal Housing Administration began in 1934 and has been insuring home loans for Americans ever since. Over the past 7 years there has been a steady decline in the number of FHA loans due to the strict FHA requirements, FHA Down payments, and Loan Limits.
Congress is looking to increase FHA Loan Limits throughout the country to help qualifying home buyers in areas such as California, Nevada, and Colorado. There has been a steady increase in subprime loans and in turn we have been seeing an increase in loan foreclosures throughout the state as well. The loan limit increase is much needed as the loan limit in high cost areas was $362,790. This price alone cost many of those first time homebuyers a chance at owning a home in California.
There is also speculation regarding the current 3% FHA down payment that is currently required to obtain a FHA Loan. Rumor has it that it will be eliminated and no longer be a requirement to receive a FHA Loan.
Many individuals will benefit greatly from the changes the FHA is trying to make. Obtain more information on the FHA Loan Program by visiting the Mortgage Loan Place Lending Guide.
 | © John-Robin Middlebrook. Last updated July 2006.
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