See what lenders have to put up with...

Below is an excerpt from the FHA MORTGAGEE LETTER 2008 -23.  Originally we believed the maximum FHA Loan to Value would change to 96.50% on October 1st.  It seemed clear at the time.  Now, The new Mortgagee Letter says it will change on October 1st but will not go into effect until January 1, 2009. 

"This mortgagee letter provides guidance to mortgagees regarding the revised down payment and maximum mortgage requirements for single family mortgage to be insured by FHA. Consistent with HERA, revised down payment requirements are set to change commencing October 1, 2008. HUD anticipates that mortgages under the prior down payment requirements that are already in the pipeline will likely be processed before January 1, 2009. Accordingly, purchase money mortgages with new FHA case numbers assigned on or after January 1, 2009 must meet the revised down payment requirements of HERA, as set forth in this mortgagee letter."

So far I have received notification from one lender that they are accepting the old LTV until Jan. 1, 2009. 

Is it just me or is the letter ambiguous? 

If it is ambiguous then we are going to have more confusion and some lenders requiring 3.50% down after Oct 1st and some will wait until Jan 1.

Best regards, Bill Ladewig

Market and Lending updates at http://www.yourFhaGuru.com