Applying for an FHA Mortgage Loan? New Guidelines in effect next month

FHA GUIDELINE CHANGES

Effective, October 4, 2010, HUD will be making several changes to the FHA loan programs:

1.      Upfront Mortgage Insurance Premium (MIP) will be reduced from 2.25% of the sales price to 1.0% of the sales price.

2.      Annual Mortgage Insurance Premium will be increased from .55% of loan amount to .90% of loan amount.

3.      FICO scores will be required to be 620 on purchases and 640 on refinances.

These changes will go into effect for any loan obtaining an FHA Case Number after October 4, 2010*

Very Important :::: The FHA Case Numbers will need to have been assigned from HUD by October 4^th for the loan to be grandfathered in under old rules.  HUD can take up to 2 weeks to issue the Lender a Case Number.  Please DO NOT assume that because you made loan application by the October 4^th date that they are under the old rules.  After the loan application is made with the Lender, the Lender then has to obtain the FHA Case # and it takes a week or two!

::::  Information provided by Carol Donnelly – Bank of America -  ph: 404.434.6187   :::::

If you are thinking of applying for an FHA loan -- that only requires a 3.5% down payment – please apply now so you can take advantage of the current financing structure.

Questions about the financing / mortgage process?  Please call Carol (listed above) or Kerry Lucasse at Keller Williams Realty.

Thank you for visiting our Atlanta Real Estate Blog!

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