I have already had buyers who qualified 6-8 months ago and now are considering buying this spring BUT….. are finding they may no longer qualify for a loan. Many Lenders need to review the file again before providing the approval letter. I have also had my mortgage lenders visit with under writing before issuing the approval letter. Buyers are not understanding this process so we need to educate them about the past and future changes and the impact on their ability to purchase a home. I was told by one of the top mortgage lenders in my area that they as well as the under writers are having a tough time understanding all the changes, which means a buyer has the potential of being denied the loan just before closing. Major changes to ensure FHA’s long-term financial soundness are coming soon Some examples are as follows: 1) Increase the down payment required from 3.5% to 5% 2) Raise the upfront premium from 1.75% to as much as 3% 3) Eliminate the ability to roll in to loan that up front premium 4) Increase monthly MIP (mortgage insurance premium) from .55% 5) Reduce seller concessions from 6% to 3% 6) Raise minimum FICO score 7) Possible LTV (loan to value) maximums by FICO score 8) Increase accountability of FHA Lenders for fraud The changes could be implemented within a couple months. This will make it tougher and more expensive for borrowers to obtain FHA loans and therefore reduce the number of eligible borrowers. NP Dodge
Nationally Recognized as a Top Realtor in North America Top 3 % of all Area Agents for 2008 Team Atkinson Buyers Agent: Sarah Shaw Cell: 250-1449 E-Mail: sshaw@npdodge.com Billie Atkinson, GRI, BA Cell: 212-3373 Office: (402) 333-5008 Fax: (402) 333-1914 16909 Lakeside Hills Plaza, Ste. 119 Omaha, NE 68130 WEB SITE: www.topomaharealestate.com
Dexter Credit Union - Providence, RI
Yes! there are a lot of changes going on! so many that it is making everyones head spin! I believe that people need to get the move on before the stimulus ends and lending will only be available for the best of the best credit.
Jan 30, 2010 02:26 AM
Douglas Elliman Real Estate - Manhattan, NY
Service-Beyond Your Expectations
I believe that if your client is below the minimum credit score and they are increasing the down payment to 10%, that the buyer really shouldn't assume more debt.
Jan 30, 2010 02:32 AM
Integrity First Financial Group, Inc. - Santee, CA
East County San Diego Homes 619-838-4408
Currently the FHA MIP has been increased from 1.75% to 2.25%. This is in affect for any case number issued after April 5, 2010. It will still be able to be financed into the loan amount. Down payments should remain the same. Check out my blog FHA Policy Cahanges-How This Affects You for additional information
Jan 30, 2010 02:46 AM
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