FHA announced several policy changes today to guarantee us a wonderful spring. Since lenders have just been lending too much money and they apparently are afraid real estate agents will be getting too rich, the following changes will be made this spring:
1. Raise MIP to 2.25% and request legislative authority to increase the maximum.
2. Require a minimum score of 580 or a TEN PERCENT downpayment.
3. Reduce allowable seller concessions from 6% to 3%.
Any one of these three items could take FHA financing off the table for many borrowers. Having all three coincide with the end of the tax credits will result in a lot of unsold houses. I can't immagine what the administration is thinking. Also, we haven't heard any warnings about this from NAR. I hope I just missed those warnings and that NAR was not just caught off guard (again).
Comments(1)