Possible FHA Changes Looming!
I do not often send "links" to articles, as I figure most of you will see or hear about it on your own. However, this article deserves recognition, as it will probably impact future sales you might be working on.
Many reports have surfaced about FHA's financial condition, so regulators are putting pressure on FHA to tighten their standards.
No changes have been announced and No dates for any changes have been mentioned. Sometimes, when changes are made, they are for a date far into the future; HOWEVER, sometimes change dates are immediate. So, in other words, if you have an FHA client now, who is looking for the lowest down payment, and or has marginal credit, than they should be looking to buy their home ASAP if they want to qualify using the current standards. Standards are usually "locked in" when your lender pulls an "FHA Case Number." You should have a ratified contract to get a case number.
Here is the "writing on the wall:"
1. Costs to obtain an FHA will be going up
2. Buyers will need more down payments to get the loans
3. Credit standards for FHA loans will be will be getting tougher.