As reported by Inman News yesterday--important financial news from the Adminstration is coming down the pipeline.
"The Federal Housing Administration won't raise the 3.5 percent minimum downpayment requirement for mortgages it guarantees as long as borrowers have FICO scores of 580 or better.
Beginning early this summer, however, borrowers with credit scores below 580 will be required to make downpayments of at least 10 percent in order to participate in FHA's mortgage insurance program.
This spring, the Obama administration also plans to raise the upfront mortgage insurance premiums paid by all FHA borrowers to 2.25 percent, up from 1.75 percent now."
This is the kind of thing that should have been done decades ago--as I've said in previous blogs, once the Fed's adopt a policy, the private sector must also have competitive products---and this is a major reason behind the 'anyone can get a loan' troubles of late.
So is this "too little, much too late" ?
What happens to our local real estate economies?
At this point, as far as I can tell, it's the under $300k homes that are selling. So...we shall see.
Your thoughts?
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