Still has to make it through the Senate.

In theory, to the extent that RE pain is concentrated in CA, FL, OH, MI, NV, and AZ, the remainder of the Senate may not be too happy about opening the Federal coffers for people in these states to borrow huge multiples of their income and buy houses.

Of course, party lines will play a huge role, too…

I don’t get why you seem so bitter about increasing the fha limits, and why you refer to it as a “bailout.” The 417k is merely an arbitrary valuation and has nothing to do with the ability to pay the loan back. If the person is entitled to the loan based upon credit worthiness, and has met all other qualifications, what th f…k difference does it make to you and why do you care as long as the loan has a very good chance of being paid back? There is no difference between that and a loan 417k or less, the key is credit worthiness, not the total amount.
if your so upset about uncle sam holding the bag, what about the continual pissing away of billions on a pointless war in Iraq that going to lead to real inflation just like after the vietnam war!!! Oh, that’s right, its not called a bailout when the recipients of the government billions are Halliburton and Blackwater, its called the war on terror.. all cwide needs is a new pr person to refer to the housing crisis as a terrorist plot.
give me a break!!!
LL

LBB,
sorry about the rant, my opinion is if you have been responsible worked hard and paid the bills and have a top notch credit, you should not be penalized by living in a high cost state like CA or NY and forced to get a jumbo, that is all.

good luck to you.

LL

Sandi you are right, that article was complete crap on the part of the writer. You are right, 417 is the gse magic number, FHA varies and S.D. is 363k. It also said it would authorize up to 300 million, great, that will be less than 500 houses.

This is all political speak and won’t help anyone, Lending bubble is right, you need 180k fully doccumented and guaranteed income to pull that 700k from FHA and that is not who needs the help nor will those people go FHA. FHA rates are usually higher, require upfront mort insurance (MMI? or whatever they call it) they have the strictest of income ratios and the strictest regulations. From a buyer’s perspective I wouldn’t get an FHA loan unless it was my only option. The average problem scenario for those facing foreclosure are people who are facing a reset on a mortgage of 400k to 750k with 100k or less in income and they are upside down 5-20%, regardless if FHA is now allowed to loan them money those people won’t come close to qualifying. The people foreclosing are not short two or three hundred a month and their reset in many cases is only what the amortized rate should have been in the first place. Unless FHA decides to do stated, pay option, neg am, this is an 8 seat lifeboat for a whole cruise ship.

Are people going to be willing to make huge sacrifices to buy an asset thats losing value on an almost daily basis?

I doubt it.

yeah. moral questions aside, this is not going to make heck of a lot of difference. they are not rising debt to income ratio limits, that’s the important part.

Before GWB was elected the first time, I used to get into a lot of arguments (friendly types) with friends and acquaintances who said that GWB was really dumb. My rationale was that the man had an MBA from an ivy league university and had been the governor of Texas so how he couldn’t possibly be an idiot……………….and so, I voted for him.
After one term, I saw that I was wrong and that the people who said he was dumb, in fact, were correct. Now, that’s not to say that any of the idiots who were running against him both times were any brighter than Bush but this whole housing debacle has truly shown just what an economic genius that he is NOT. By the time all of the greedy fools in Congress get through destroying the value of the dollar and the U.S. economy, the USA will be in such pitiful shape that it will take 10-20 years of proper management from some very disciplined, extremely smart politicians (if there is such a thing as a smart politician) just to get the country back to 1999 value level. We are watching a disaster in the making. NO, not the housing problem but the fixes that the politicians are going to implement in an attempt to fix it. God help us all.