FHA Changes Impact Buyers
January 22nd, 2010 categories: For Buyers, Liberty Township Ohio, Mason Ohio
Recently FHA announced updated guidelinesfor financing which become effective spring. In an effort to beef up their dwindling reserves- FHA added new costs in order to obtain an FHA loan. Home-buyers with a credit score less than 580, the minimum down-payment will be 10% and for credit scores above 580, the down-payment is still 3.5%.
Up front mortgage insurance premiums will be increased from 1.75% to 2.25% for all FHA borrowers.
Seller concessions will be capped at 3%, instead of 6%.This will impact a lot of buyers who have relied on the seller to cover all the closing costs. Since the premium is increasing and seller concessions are reduced, buyers will need to bring some money to the closing table.
The changes will effect the initial cost of all FHA financed homes and will be costlier for those with a lower credit score.
Stay tuned for more details about changes.
| Discussion: Comments Off
Both comments and pings are currently closed.
