3 New FHA changes that may affect you if you are looking to purchase a home.

HUD just released a few new changes to the FHA program.  They are as follows:

- They have reduced the seller allowable concessions from 6% to 3%.  FHA has said that allowing sellers to contribute 6% creates more risk to FHA in that it brings up the cost of the home above appraised value which thereby exposes them to more risk if the homeowner then defaults.  FHA says that reducing the concessions to 3% will bring FHA into conformity with industry standards.  This new change is going to make it more difficult for some trying to purchase home.  

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