New Rules for FHA Mortgages Affect Green Bay Home Buyers

Spending some time this Sunday morning I got a chance to catch up on some of my favorite real estate blogs. One of my favorites is The Phoenix Real Estate Guy.

Green Bay Home Buyers need to be aware of FHA Rule Changes

He wrote a very insightful post that I would strongly recommend you read in full. The long story short of his post is addressing the New Rules for FHA Mortgages that affect Green Bay Home Buyers. The legislators rushed to get the tax credit extended and even expanded to motivate fence sitters to cross into home ownership. FHA is the major vehicle used for Green Bay home purchases these days. It is becoming more and more difficult to get an FHA Mortgage for your Green Bay Home purchase and with the new rules it will continue to get more difficult and costly for home buyers.

New FHA Rule Changes may affect your Green Bay Home Purchase

For a government that was so quick to blame others for the housing crisis, it’s the government that really opened the door to less regulation and made it easier for more banks to take on more risky loans that would be backed by the government. With that being said as it’s unfortunate for some home buyers that will have to pony up more cash to get a mortgage on their new home but it’s a sign of changing tides in the lending market that Green Bay home buyers need to be aware of.

Federal Government at Work: Let’s help people buy homes! No, wait. Let’s make it harder. New Rules for FHA mortgages. — The Phoenix Real Estate Guy

Sometimes I don’t understand Congress and the government.

Ok, often I don’t understand them…

Case in point:

The flurry of activity in the hollowed halls of the U.S. Capitol building over the last couple of months to get the first-time homebuyer’s tax credit extended (and expanded beyond first-time buyers) was touted as necessary to help people buy homes and turn around the ailing real estate market – and the U.S. economy. Billions of dollars have been spent on this program, with billions more to come.

Think your elected officials don’t believe the tax credit helps the housing market, and hence the economy? In their own words:

“Already, the homebuyer’s tax credit has helped to stabilize the housing market. . .This extension and expansion will help our economy grow and allow many more middle-class families to realize the American Dream.” – Senator Chris Dodd (source)

“The key to returning stability to the economy lies within the housing market, and we have crafted a meaningful credit that will create a strong foundation for future growth and make a measurable difference over the next seven months in our economy.” – Senator Johnny Isakson (source)

“The bill also a places a down payment on the future of our middle-class because it extends, for the first-time homebuyer, a tax credit helping more Americans purchase homes and making it a little easier for families to move into a new house and keep a roof over their heads. This initiative has already been successful. We’ve seen the positive impact — the steadier foundation in our housing market. Most significantly, we’ve watched a new generation of Americans start living out their dream of homeownership and economic security.” – Speaker of the House Nancy Pelosi (source)

I happen to think they are wrong, but hey, they are as entitled to their opinion as I am to mine.

OK, so the folks in Washington are looking out for us, passing laws they feel will spur the housing market toward recovery. Good for them. While it may seem at times their primary job is to get re-elected, let’s give them the benefit of the doubt and say they have the American public’s best interest in mind.

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