In an effort to keep FHA financing changes as simple as possible to understand; here is a brief list of the changes on our horizon for the Real Estate industry to know.
3.5% minimum cash investment for FHA loans (gifts allowed from family members, unions, state and local bond programs, etc).
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Seller-funded DPA to end, credit approval required by 9/30/08
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12 month moratorium on FHA risk-based premiums effective 10/1
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Streamlined approval process for FHA condos
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No change to FHA approval requirements (no surety bond in lieu of audited financials)
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Nationwide licensing system for loan originators
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FHA floor at $271,050; ceiling for FHA/Fannie/Freddie at $625,000
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VA should have equivalent guaranty to raise limit to $625,000
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