The Senate passed changes to the way FHA mortgage loans work on Friday. The changes include cutting the required down payment by half, and raising the maximum loan size to $417,000. MarketWatch reports that more than likely, first time homebuyers will be the primary beneficiaries of this new mortgage relief bill:

David Berenbaum, executive vice president with the
National Community Reinvestment Coalition, said the FHA reform program
is a "significant first step," and very good for first-time home
buyers, but that the program needs to be expanded.

   
       

"It’s our belief that it
will have a limited impact on consumers who are facing foreclosures
because it has rather strict underwriting standards," he said. "For
many consumers their credit has already been impaired because of the
credit they have already received."

The move is expected to help the housing market by making it possible for more people to buy homes in light of the tighter lending standards and credit requirements that banks have been following. However, FHA mortgage loans still have tough standards. And this is a good thing.