In the mortgage industry, the Federal Housing Administration (FHA) is looking into the possibility of loosening rules on mortgage assumptions. Mortgage assumptions are a unique form of mortgage that allow a homeowner’s loan to be transferred from the original borrower to a buyer. This allows the buyer to accept responsibility for the loan without having to apply for a new one.
Julia Gordon, a renowned mortgage industry expert, expressed that the FHA is considering potential rule changes, however how much this might influence the market is uncertain. With a rapid growth in home prices, borrowers are having to bring a lot of money to the table, which can be a challenge for some buyers.
The most important elements of the text are:
• Federal Housing Administration (FHA) investigating potential rule changes on mortgage assumptions
• Uncertainty on the market’s reaction to the potential changes
• Increasing home prices requiring borrowers to have more cash available to purchase
You can read this full article at: https://www.housingwire.com/articles/gordon-fha-is-examining-mortgage-loan-assumption-rules-hoping-for-a-new-partial-claim-option/(subscription required)
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