HUD has announced that the following changes will be applicable with all FHA Case numbers issued on April 5, 2010 and after.
The two key changes are such......
I'm interested to see if this changes much. I've never had a seller agree to a 6% concession, but I suppose it happens. That PMI though, that could be a bigger factor. Is there any word about increasing the down payment from 3.5 to 5%?
Keith, it appears that just went thing are starting to go well they change the rules. Thanks for the update.
The downpayment/equity requirements were left alone for now. They will stay at 3.5% for purchases and a 2.25% equity requirement for refinances. The 6% seller concessions were often popular with smaller purchase prices. This reduction will make it harder for a lot of asset challenged homebuyers to get into their first home.
The default rates on FHA loans have increased over the last several years as those with credit scores less than conventional minimums have been placed in these loans. This is HUD's way of trying to combat this increased default rate. I just hope we don't see that 5% downpayment rumor come true.
Keith--Thanks for this information about FHA. I will add this to my class material for CE next week. Thanks for stopping at my site recently. A few weeks ago I was in your area for the HH convention. Did have time to shop, etc.
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