FHA Mortgage Guidelines Will Tighten In The Spring
I was quoted today in the Sun-Sentinel article regarding the recent announcement that FHA mortgage guidelines will tighten in the Spring and Summer of 2010.
FHA Mortgages are very popular and account for over half of all purchases for first-time homebuyers. FHA Mortgages give buyers the opportunity to purchase property with a small down payment and also allow for seller concessions to help with closing costs.
Here are the changes that will take effect in the Spring/Summer of 2010:
.50 percent increase in insurance premiums from 1.75 percent to 2.25 percent of the value of the loans.
3% seller concessions instead of 6% of the sales price to help buyers with closing costs or to buy down interest rates.
Borrowers with credits scores under 580 will have to put down 10% of the purchase price instead of 3.5% of the purchase price.
FHA insured 5.8 million single family homes with mortgages valued at $750 billion in 2009. FHA is trying to learn from the lending mistakes of the past, as last year’s cash reserves drastically declined below a level that Congress and the government requires.
Great news is that mortgage rates are still at record lows, and the $8,000 tax credit is still in effect until this Summer. After hearing about the new FHA guidelines that will take effect, I am telling “on the fence” potential buyers that NOW is the time to purchase a home in Parkland or anywhere in South Florida!
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If you are interested in buying or selling a real estate property in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.