With Bush just signing the housing rescue law, will it affect the deal on my house loan?

Question

I was reading an article on CNN.COM

http://money.cnn.com/2008/07/30/news/economy/housing_bill_Bush/index.htm?cnn=yes

One of the feature states "A ban on down-payment assistance from sellers. The new law eliminates a program that has allowed sellers to provide down payment assistance for FHA loans. The law would also increase to 3.5% from 3% the down payment requirement for borrowers getting FHA loans."

I am currently in process on purchasing a brand new house from Lennar who offers a down payment assistance program where they pay the 3% down payment and closing cost if I go thru their lender. I signed the Purchased agreement about 3 months ago (Apr 2008). The loan may be approved already by now. We haven't signed any final paperworks. Closing is 3 months from now (Oct 2008). Estimated build date of the house will be around Nov 2008. Will this affect the deal that I got from Lennar with Bush signing the housing rescue law?

Answer 1

If you got an FHA loan it could.  Conventional loan, no.

Answer 2

As others have stated, this MAY affect you.  If you are getting an FHA loan, it likely will.  You'll need to contact your lender to know if you don't already.  Since the lender is the builder's lender, they may have other conventional programs available if this affects you.  Talk to your loan officer.

Answer 3

Yes it will  - if the FHA loan is closed after the bill goes into affect.

Answer 4

maybe