FHA(Federal Housing Administration) and HUD (Housing and Urban Development) are at it again. It appears that beginning in April, the Upfront and Annual [monthly] Mortgage Insurance Premiums assessed to borrowers who secure FHA financing will increase again.  

 

FHA Raising Upfront and Annual Mortgage Insurance

 

Put into dollar terms when fully implemented, if we assume a traditional 3.5% down payment, there will be an approximate $34/month increase in payment for every $100k financed. If you’re on the fence about buying and considering FHA financing I would suggest you proceed sooner than later. If you presume an average loan amount of $250k, that's $85 per month; a substantial increase in your monthly housing payment that could be avoided by purchasing a home before the new guidelines take effect. There is also talk of limiting the maximum amount of seller concessions to $6k.  

 

I will post a follow up as soon as more information is available.

 

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Living A Dream Real EstateTwitterLiving A Dream Real Estate FacebookLinked In Amanda S. DavidsonAmanda S. Davidson - Featured on WUSA9
Co-Owner/Broker Living A Dream Real Estate

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Fairfax, Virginia 22033

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3 Comments on FHA Takes Additional Steps To Bolster Capital Reserves

FEB
29
2012
535,983 Points 71 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

In my market most transactions are under 150k because that's all folks can afford. That 40-50 bucks extra will make a significant difference. Oh well, change is what makes our job interesting, right?
7:05am • #1
256,090 Points 9 Featured Posts Outside Blog Called Shot Master

Doug- Change always keeps it interesting and if you're not changing you're a dying breed. I agree $40-$50 will make a big difference. Thanks for commenting!
7:45am • #2
DEC
03
959,154 Points 53 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Amanda, one thing we can always look forward to - CHANGE, and sounds like we shall be expecting some more changes with FHA soon, and sure won't help our first time home buyers!
10:30am • #3


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