The Senate overwhelmingly just passed the FHA Modernization Bill with a 93-1 vote. If enacted, this will bring dramatic changes for FHA insured mortgages including increased loan limits and reduced down payments.
HUD has been chomping at the bit to have FHA become more "modern" for quite some time. In April of 2006, Brian Montgomery Assistant Secretary of Housing stated,
"The bill itself is really very simple, the proposal straightforward. It does just what its name suggests: it modernizes the 72-year-old Federal Housing Administration and restores the agency to its intended place in the mortgage market."
The Senate and House both have different versions of the bill. I’m betting the President will be approving the FHA Modernization Act into law possibly by the end of the year.
FHA has always been a great resource for home owners and home buyers alike. For more information on FHA mortgages, please check out my FHA Resources page.