We knew it was coming, now it’s HERE. New FHA Guidelines Announced
This morning FHA’s commissioner David Stern’s announced the new changes for FHA home loans. Basically the changes aren’t dramatically significant, but they will have an impact. Here’s a few of the highlights. And here’s the CNBC Article.
- FHA is raising the borrower’s upfront mortgage insurance premium from 1.75% to 2.25%. Nobody likes to pay more, but this isn’t a deal breaker for most.
- If a borrower’s FICO score is above 580, they qualify for a 3.5% down payment. Below 580, borrowers will have to put at least 10% down.
- Maximum allowable seller concessions has been reduced from 6% to 3%, which sounds like a lot, but the reality of today’s marketplace we rarely see 6%. Why? Because a 6% contribution usually brings the property appraisal in low, which is a no go for everyone. So this change is sort of a moot point.
So I think the bottom line is that we can expect changes in lending requirements for the next 18 months or so. The key to a successful purchase is patience, persistence, choosing a knowledgeable REALTOR and a loan officer that will enthusiastically solve problems find answers and process the file as quickly and efficiently as possible. Stay away from strangers
Getting we can do for you let me know. Ken Brand 832-797-1779.