New FHA Revisions on the Horizon!

As we all have bared witness to, many changes have been arising in the mortgage world with 2010. For instance, all mortgage companies are now equipped with new 2010 good faith estimates that must be coordinated with all parties involved in the purchase transaction and spot approvals for unapproved condo complexes are no longer eligible for FHA. Please expect more changes to come for the year of 2010 with FHA and Conventional guidelines because default ratios on existing mortgages are up.

Therefore, although we are subject to abide by these new and sudden revisions, we must learn to navigate through them as we prepare best to serve our clients in the best possible way. Instead of being disheartened with change, we must learn to adapt to change so we can propel ourselves to the top of the real estate world and be the best at what we do.

A new mortgage letter was released that pertains to a new FHA guideline change set to take action April 5^th 2010. As of this date, any transactions that have not obtained an FHA case number that are seeking FHA financing will be forced to pay a higher up front mortgage insurance premium. The up front mortgage insurance premium is a required fee that HUD charges on every FHA loan. This fee is allowed to be financed into the loan amount and currently equals 1.5% of the loan amount. As of April 5^th, this mortgage insurance premium will increase to 2.25%. This is a sizeable difference in fees so please make sure that you are aware of this shift.

Once again, if change is destined to occur, and it most definitely will, lets try and get ahead of it and our hands around it so we can make the best of it!