House and Senate reached an agreement on the bill. It is for the most part final. The most tragic part of the bill is Seller Funded Down Payment Assistance Programs. It will be eliminated October 1st and your loans must be approved by September 30th per the bill.



The fight has been fought and that will leave VA and USDA as the sole remaining No Money Down loans.



http://www.rules.house.gov/110/text/110_atostohto3221.pdf

Federal Reserve is getting more involved in this as they realize the impact this move will have on the economy. With most no down payment loans being eliminated they are stressing that FHA needs to get more aggressive and lower down payment requirements.

Very few people I see applying for mortgages have the required down payment available. With the excess of properties listed for sale and banks holding REO's something would need to happen to move these homes. The secondary lending market is not positioned to handle these loans. With Corporations like Fannie and Freddy struggling along with their loan insures issuing PMI I would predict they will continue to increase down payment requirements.

I would estimate 95% of the FHA purchase transactions we close are with DPA...

I would also estimate 90% of all purchase transactions I do are FHA.