Some Changes in the new housing bill

You probably know by now that the new housing bill will become law shortly.

But, did you know that there are some "hidden" changes that the bill has?

For example: FHA will now require 3.5% down payment, increased from 3%. And, that the buyer must have the FHA insurance fee of 1.5% in their checking or savings account. This amount (1.5%) cannot be gifted or borrowed. The 3.5% can be gifted by anyone, and will require a gift letter to that effect. These changes go into effect October 1, 2008, when the new Federal budget also goes into effect.

The other point...the $7500 "credit" is really an interest-free loan. It must be paid back over 15 years at the annual amount of $500. So, it's not that great.

Just be careful out there. If it looks too good; if it seems too good; if it smells too good...well, I'd be looking for some attached strings.