HUD has confirmed that after 10/04/2010 FHA guidelines will change & the monthly PMI (private mortgage insurance) factor will increase to .85% - .90% (from .55%) but the Up Front PMI (which can be financed back into the loan) will be reduced to 1.0% (from 2.25%).
These results will increase a buyers payment, so if you are a buyer whose going to just squeeze by with your payments for a price range, now is probably better to get a quality offer written. Otherwise, when the new guidelines hit, you'll have to look at homes in a lower price range.
Also - If you are a homeowner in a current FHA loan, this will affect your ability to refinance with a FHA streamline. Let me know if you need a trusted loan officer's contact info.
clear skies,
doug reynolds
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