FHA down payment will change January 1, 2009

I thought this would be an excellent topic for my first blog post...

We got word today that a new mortgagee letter was issued by FHA. FHA will be ringing in the new year with a new down payment requirement. The current minimum down payment is 3% and that will increase to 3.5% as of January 1st.

I know this may not seem like much, but to some this will make or break their deal. Since the first word of "Seller Contributed" down payment assistance going away I have been advising my clients to save their pennies for their down payment and a half of a percent increase could mean a lot more pennies.

If you have buyers that have been sitting on the fence, this information may be just enough to help them take action.  Not to mention that mortgage rates are great right now.

I hope that you find this information helpful and are happy to hear about it in advance, not on January 2nd.

Hilary