This one bothers me. It feels "anti FHA". But it is what we have to look forward to.
On January 1, 2009 the guidelines for FHA Down Payments change.
Currently a buyer can put as little as 2.25% on the typical FHA transaction with the only caveot being a 3% down payment if the seller is paying all of your closing costs.
as of January 1: there is a flat down payment of 3.5%.
That may not sound horrible, but to put a $ number on that it will hurt. on a $250,000 purchase the down payment will have to be $3,125 higher than it does today. That is significant.
The good news: we have a few months left this year to get our buyers in with the old guidelines. It is important to pass this information along to your buyers so that they are aware of the change, or they are going to get blind sided. In many cases an extra few thousand dollars will make or break an FHA deal.
Knowledge is power. Be sure to keep an eye on this one. It is an opportunity to convert some of your tire kickers since the clock is definitely ticking.
Have a great week
Rob
Robert Rauf
Real Estate Mortgage Network
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This one is a pretty big issue. If you are working with any clients that are in the market there is only a few months left to take advantage of the new guidelines. It could be a way of saving your clients a fortune... and it could also be the difference between being able to buy VS not being able to buy. As I mentioned in the example above, it is more than a $3,000 difference in down payment on a $250,000 home.