Pinellas Home Buyers Need to Know About FHA Loan Changes Effective January 1st

The FHA is pulling in the reigns on it's lending practices again. If you're currently out shopping for a new Dunedin home and were planning to put just a little money down, there are 2 critical changes that became effective yesterday.

Increase in Down Payment for that Dunedin Home

• You now need a 3.5% down minimum instead of the current 3% requirement.
• As detailed in an earlier post about the passage of HR3221, the seller can't pay your down payment any longer, yet your Palm Harbor Real Estate professional can help you negotiate for seller-paid closing costs.

Mortgage Limits Decreasing

The maximum home purchase price effective January 1st will be $271,050, down from $292,500, as detailed in HUD's Mortgagee Letter 2008-36. Take heed of this if you're shopping in the $250K to $300K price range for that beautiful Crystal Beach Florida home. You don't want to find yourself out of the FHA loan package entirely.

A Recap of Your Options for a Pinellas Home Mortgage

Your T.V. set is incorrect - there ARE still plenty of loans available, and these are your options today:

FHA Financing - 3.5% down payment required

Conventional Financing - Requires minimum 10% down payment.

VA Loan - 100% loans still available

Private Financing - Private "hard money" is available at whopping interest rates for investors. Or there's always the bank of "Mom and Dad".

Feel free to contact us call us at 727-366-0324 (Julia) or 727-366-0325 (Matt).