Important if you are planning on buying a home. FHA new guidelines

The FHA has announced policy changes that will affect you, the buyer. These changes are not expected to take effect until the spring or early summer.

Some of the highlights
1) Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending. The first steps will include raising the upfront MIP to 2.25% and secondary steps will involve shifting some of the increase to the annual MIP. An official mortgagee letter on this particular guideline is scheduled to be released tomorrow.

This is for buyers without enough down payment. You will now be required to pay more upfront (however, I believe you may still be able to wrap it into your new mortgage(

2) Update the combination of FICO scores and down payments for new borrowers. New borrowers with less than a 580 FICO score will be required to put down at least 10%.


This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.


3) Reduce allowable seller concessions from 6% to 3%.  (for instance a seller may concede to pay for closing costs where before you could ask for up to 6% of the price, now you will only be able to ask for 3%)


This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.


 4.) Increase enforcement on FHA lenders.

FHA is the Federal Housing Administration


Here is a link to the press release if you would like to read it yourself.

Bottom line...buy your new home before the April 30th cutoff for the tax credit and try to get it all done before these changes take place!

         

To all our Agents, Clients, soon to be clients, Friends and Family.

We wish you a peaceful and prosperous Holiday Season!

Attention First time buyers!! $8,000 Tax credit !!

Great new for First time homebuyers....You can use your $8,000 tax credit now torwards your downpayment!!!

From Realtor.org "Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that theFederal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment"

Now really is the time to buy!!!!