Today's presidential address concerning FHA has some promising elements to it. However, it is not all it is cracked up to be. The new FHASecure program could help homeowners with 2/28 type mortgages that have re-set to a higher rate. IF they have had no late payments on the mortgage PRIOR to the re-set AND they are past due now. Not sure if it will help those who have not yet re-set, but if borrowers have tended to business since the loan's inception and cleared up credit problems, they may be able to use the regular FHA 203b program to refinance. Many homeowners have done just that.
The key is to not wait until problems hit. Even if the re-set is a year away, now would be a good time to look into the program. If Congress [the Senate, primarily] will resist lobbying pressure from the PMI companies this time around and increase loan limits to equal conforming limits, more homeowners and homebuyers will be eligible for FHA financing. And that is good for all of us. The insurance fund covers the expenses of the program, so this is not a bailout situation. FHA modernization is crucial to moving forward in the mortgage arena.
Reverse Mortgage borrowers also await. Some could take advantage of the purchase provision, while many others will see an advantage in the reduced costs. And another group will benefit from the increased loan limits. In my area, $200,160 is the limit for a single family home. And that cuts out a fair amount of equity for seniors. This is a start in the right direction, but Congress will need to look for solutions, not punitive measures [those are already in place], if it hopes to ride in on a white horse.