Home Buyer’s Are You Aware Of Upcoming FHA Lending Changes?
One of the biggest things a good Buyer’s agent and loan officer can do is to keep you aware of costly changes to the real estate market and home loan process. So have you been notified of upcoming changes to FHA lending guidelines? Well let’s take a look at what you are look at.
The Federal Housing Administration (or FHA) is increasing the cost of their up-front mortgage insurance premiums starting on April 1st. Yes a cruel April Fool’s prank that has no one really laughing. The increase will apply to new 30 year loans. This is in addition to changes to the monthly PMI and the fact that the seller contributions are going to be lowered.
On another note for those elderly clients looking at possibly doing a Reverse Mortgage the Mortgage Insurance Premium is being raised from .5% to 1.25%, and lower principal limits.
This does not give you much time to save but if you have been sitting on the fence trying to decide whether now is a time to buy this is just one more reason to ACT NOW! However, if you are not ready don’t panic buy it is not a change that will break the bank. It is going to impact you and if you can act now that will save you money.
So check with your Home Buyer’s Agent and your Loan Officer to see what the exact differences are going to mean to you at your loan limits.
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