It is important for everyone to know that FHA Guidelines for new loans will change again around Feb 1st, 2010. This will effect new buyers and those trying to sell a home.
Changes are designed to help stabilize the market but the effect is to be determined.
The changes include:
1.Increase the up-front mortgage insurance premium (MIP) to 2.25%;
2.Update credit score and down payment requirements for new borrowers; (check with your loan officer)
3.Reduce seller concessions to three percent, from six percent; and
4.Implement a series of significant measures aimed at increasing lender enforcement.
Obviously these changes will:
For new buyers- you will need to Save and come up with more of your own money for closing cost and down payment requirements.
Thus Creating a stronger buyers market. There will be less buyers in Hampton Roads and every where else ready to buy(preapproval and money in hand) ready to qualify for the already thousands of homes on the market. But for those buyers that are ready this will put you in a great position to try to get a deal on price. (If the owner has equity and if the property meets FHA Appraisal guidelines) Because, you will have less competition.
Sellers will have even more competition and may be forced to do more short sales as comparable properties will start reducing prices to attract the qualified buyers, More owners will owe more than there home is now worth (appraisal wise), And in this area with military moving in and out this will be a big problem. I can see the Catch 22 starting to brew.
New Buyers- call your lenders to discuss the changes with your lender asap. You must understand how this will effect you before you can write an off
This info brought to you buy The Hampton Roads Real Estate Lady!
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Deandrea "Dee Dee" Jones
Associate Broker Wainwright Real Estate Virginia Beach, VA DJones Real Estate Team
www.DJonesSellsHomes.com blog: DJonesRealEstateBlog.info
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