Washington Report--The end of a mortgage era

Highlights of the "Obama" administration's white paper eliminates many of today's favorable mortgage conditions. So, if you plan to finance a home purchase it most likely will cost you more in the near future:

Higher insurance fees on FHA mortgages

A possible increase in minimum down payments for FHA-currently just 3.5%

Significant reductions in maximum loan amounts later this year for both FHA
and conventional loans eligible for purchase by Fannie or Freddie Mac unless Congress votes to retain the current statutory $729,750 limit for high-cost areas (Florida Keys) before it expires on Oct 1.

The report also calls for raising down payment requirements at Fannie Mae and Freddie to 10%

Retaining the controversial and costly add-on fees charged by Fannie & Freddie that can increase the expense of obtaining even a moderate sized mortgage by thousands of dollars.

The administrations wants to wind down Fannie and Freddie over the coming years but also reduce the size of FHA's role-cutting its market share from around 30 percent today to 10%.

Bottom Line:Get ready to pay more for mortgages no matter what ultimately happens to Fannie & Freddie.