Hello, LOs!
For better or worse, legislators love writing bills.
And housing is, bar none, a lawmaker's favorite industry to tinker with. (Last time I checked, constituents in each of the 435 congressional districts care about where they live.)
So, loan officers have to take the hits as they come.
Congress' latest attempt to "help" borrowers amid the overheated, overpriced, hyper-insane housing market, is to make it easier for first responders, teachers, firefighters, police officers and prison guards to buy a home.
Good luck finding one.
When a borrower does, it's likely the seller may have priced it a little bit higher than what it's worth. The borrowers who win are the ones with money in the bank to cover the appraisal gap.
That may not be an option for the borrowers that lawmakers are hoping to give a leg up. Still, I'm betting many LOs are cautiously optimistic about another option, especially one that is quite a bit different than the earlier proposals.
"It sounds amazing! And much simpler to administer than a tax credit or DPA," Jeff Anderson at Rancho Capital Home Loans told me. "The maximum FHA loan in my market (Inland SoCal) is $477,250. So, the UFMIP of 3.60% would add $17,181 to the loan balance. This seems, at first glance, like a good deal for home buyers. But, why limit the program primarily to public employees? What about construction workers, trash collectors, postal workers, UPS/Fedex drivers, mechanics, nurses, dentists, small business owners, and reporters who work at HW?"
It's a good question. LOs – what do you think of creating more VA-like programs for various professions? Email me at gkromrei@housingwire.com.
Georgia Kromrei
Senior Mortgage Reporter, HousingWire
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