First-Time Homebuyers who put "Buying a House" on the top of their New Years Resolution List need to become proactive ! We are still hearing the rumors that the Down-Payment on FHA loans will increase to FIVEpercent (5%). That increase can definitely impact a prospective home buyers purchase power.
Now add that the to the projected decrease in allowable seller contribution towards the Buyers closing costs to THREE percent (3%) from six percent (6%) that definitely limits how the buyers cash reserves are allocated.
Many buyers could buy their home for just Three percent out of pocket , and the Sellers contribution would cover the majority of the closing costs (transfer taxes, real estate taxes , attorney's fees , lenders fees), leaving the Buyer room to spend their own cash on moving expenses.
Before too much more of the year slips by , pick up the phone call your trusted local Realtor and find out what the purchase process is in your local area and find the home of your dreams .
From a reliable source e-mailed to me today:
"Our consultant that monitors FHA has notified us that the Federal Housing Administration will definitely raise the down payment requirement to 5% and limit seller concessions to 3% of the sales price. They are expecting an announcement in the near future. If we have a property case number prior to the change, they will be grandfathered under the old system. If you are working with buyers, I would notify them that this change appears imminent"
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