FHA Changes On The Way...

Ken Cook, from America Home Key Mortgage, is an FHA expert and extremely knowledgeable about the Mortgage Industry in general.  And of course he is on top of the recent and pending changes HUD announced for the FHA. 

The Federal Housing Administration, the division of the Department of Housing and Urban Development which insures home mortgages for qualified borrowers, has recently announced pending changes which will affect all borrowers and specific borrowers.

Reports show FHA defaults and foreclosures to be at 18% of the total number of loans where the average number of defaults and foreclosures on other loans is 14%. In an effort to avert the need for a taxpayer bailout there have been several changes initiated and proposed.

The rest of the article is here.  It examines the changes to the Mortgage Insurance Premium, enforcement enhancements, changing seller funding from 6% to 3%, and limitations on the 3.5% down payment.

The bottom line is that many buyers have their best shot at getting an FHA mortgage before all of the changes take place.

More current mortgage industry info can be found here on Ken's blog.