WASHINGTON – December 14, 2007 – U.S. Senator Jeff Bingaman today said he is pleased the Senate has passed a bill that will make it possible for more New Mexicans to own homes.
The legislation expands the range of mortgage amounts eligible for Federal Housing Administration (FHA) backing. It also accounts for marketplace differences in housing prices making more people in expensive areas eligible for FHA loans and simplifies requirements for FHA loans for condos and manufactured houses. The bill also creates a pre-purchase counseling program and expands post-purchase counseling for homeowners who are having trouble making their mortgage payments.
The FHA Modernization Act of 2007 also reduces the down payment requirements and makes more people eligible for FHA loans in the hope that they won’t have to resort to subprime and other loans.
“Simply put, this legislation will make it possible for more New Mexicans to obtain federally-backed loans, rather than resorting to very risky loans so many Americans have taken out in recent years,” Bingaman said. “It will give homeowners some peace of mind.”
