Who says it's gonna be easier to buy a house in 2010? NOT the FHA, that's who!

Among the real estate blogging community there's the "buzz" now that the Obama Administration's gonna make things yet "a little tougher" for Joe and/or Joan Homebuyer to actually buy a home this forthcoming year of 2010...

Maybe THAT'S why poor Barack's popularity ratings plunged all the way down to 48% this week, who knows..

READ THIS ARTICLE: FHA will tighten up in 2010...
 
So, what are YOUR thoughts?

The "gist" of this includes ... increasing the amount of upfront cash homebuyers must have ,the minimum FICO scores for new borrowers have to be higher... and seller concessions dropping from 6 percent to 3 percent.

Okay.. so on ONE hand, we have an extension of the "Highly Exalted" Tax Credit, into April...

BUT WAIT!  Now we have a little "sobering" up with actually making it harder for would be homeowners to be able to qualify by slamming them where it counts, and hurts..

Folks who are paying a high rent will need to "sweat it out" just a little longer, to save even more money before they can buy a house.. Never mind that the total amount of the monthly payment AND taxes, insurance, and related is probably close to or even less than what they're at present paying for rent...

So now, to sum up.. here's what MAY happen...

• The minimum down payment will go from 3.5% to 5%
• The minimum FICO credit score will be raised to 620
• The Upfront and ongoing mortgage insurance premiums will be raised
• Maximum Seller contribution allowable wil be reduced from 6% to 3%

That's too bad, in all honesty... I see numerous folks who can't take advantage of the extra super low rates and incentives NOW; if the above become reality, it'll just add more people into the mix. By the time these folks may be in a position to buy, it may be already too late; they may wind up "missing the boat"...

My understanding is Congress and the Obama Administration are still mulling these proposed changes. I wish they made it harder for folks to qualify a couple of years ago, when Countrywide was handing out "frightening" mortgages like they were at a "clearance sale".. Although yes, I am at least glad SOMEONE'S finally trying to be more careful THIS time around, if you're going to try to get the economy moving by promoting home sales, let's really do it and stop the self sabotage.. 

because sometimes when I read this crazy contradictory stuff, I just feel I'd be better off if I "talk to the hand:" instead...