Any First Time Home Buyers in Charlotte "Swinging" on the Fence?
October 17th, 2008 categories: Home Financing, Real Estate Grind
Mom on Swing
If you are on the fence and are financing FHA with down payment assistance, you need to purchase a home prior to January 1st. There is an important FHA change coming January st that you need to be aware of. At present FHA borrower must put a minimum investment of 3% of the sales price into a transaction. This can be a down payment of 2.25% plus .75% in closing costs/prepaids. Effective January 1st, the minimum downpayment on an FHA loan will to to 3.5%...(closing costs/prepaids can not be a part of this.) This basically means that as of January 1st, you will need to come up with an additional 1.25% of the sales price.
This really bothers me but it is what we have to look forward to. This may not sound so horrible but to put a number on it if you were to purchase a home for $250,000 your down payment after January 1st will have to be $3,125 higher than it does today. That is significant especially for the first time home buyer that is saving every penny to purchase their first home.
With prices being down and interest rates favorable, you only have a couple of months left, so what are you waiting for? Give us a call to find your dream home.
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