FHA loan requirements could hit Upstate NY Hard

The potential changes in loan requirements for FHA could really cripple the upstate housing market. Many first time homeowners use the 6% sellers concession to cover in part the pre-paid property taxes. When you add together the pre-paid portion and the bank escrow funds most buyers ($100K) have to come up with over $3,000 just to cover taxes-then you have to add on the other costs. The changes outlined in various news reports and blogs will put the possiblility out of reach of many young people-seems that this is defeating the purpose of government backed loans.