FHA is Changing

Monday, March 15, 2010

FHA is Changing

FHA is Changing

If you or someone you know is considering a FHA loan, here is a rundown of what changing in April.

1. Increased mortgage insurance, aka private mortgage insurance which is paid over the life of the loan, will increase from 1.75% to 2.25%.
2. Homebuyers who have a credit score of at least 580 may still be able to purchase a home with 3.5% down, but those with credit scores less than 580 will be required to put down at least 10%.
3. Reduced seller concessions from 6% to 3%. Basically what this means is the person selling the home will now only be able to offer the homebuyers 3% to help defray closings cost.

The bottom line is that the changes will impact some homebuyers more than others.

And as usual, if you or someone you know is considering a move, I can help. It's what I do!


NO ONE Knows Real Estate Better ~ "Helping Families Since 1984!"

Eunice Waller
Prudential Simpson & Associates


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