FHA Loans may get a face-lift in 2010. The U.S Housing and Urban Development Department(HUD) unveiled their fiscal year 2010 budget in May, and first-time home buyers may find themselves troubled with the decrease in taxpayer support for FHA’s single-family program.But future homebuyers should not despair; HUD expects that sufficient revenues for the FHA program will be generated from newly imposed insurance premiums without requiring any taxpayer assistance.
HUD’s Development Secretary Shaun Donovan reassured homebuyers and taxpayers that HUD is “cutting or consolidating programs that don’t work and instead, investing in programs that do work.” He predicts that the new budget will “change the way HUD does business.”
Donovan also says that the new HUD budget will facilitate systemic reform and policy innovation, and form new partnerships and collaborations to respond to the nation’s housing crisis. Ultimately, the change in budget is meant to strengthen FHA, curb mortgage abuse and predatory practices, as well as increase counseling for homeowners at risk of foreclosure.
To reflect the rising volume of mortgage business and fraud, HUD has eliminated 27 programs and activities from the previous years budget so that their main focus can be wholly dedicated to investing in initiatives to increase transparency and accountability.
Future homebuyers should have a more stable and durable FHA program to look forward to in the coming years. Movoto will continue to provide outstanding local real estate agents to help you find the home you’ve always wanted.