Friday, July 16, 2010

Your Opinion Needed on FHA Plans

FHA temporarily increased the amount that the seller can contribute to the buyer's closing costs from 3% of the sale price to 6%. Now they are thinking of reducing it back to 3%.

This is another example of the government getting in the way of a housing recovery. FHA is looking for opinions on this proposed change. Remember, as the government makes home sales more difficult, more houses will stay on the market and home values have to drop. Even if you aren't buying or selling in the immediate future, vacant houses affect you because of 1) the loss of property tax revenue to the city and county, resulting in reduced services, 2) the blight of vacant houses and 3) the reduction in your home's value, potentially making refinancing impossible.

Make your comments here.

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