LOW CREDIT SCORE? HIGHER FHA DOWNPAYMENT!

By
Real Estate Agent with Howard Hanna Real Estate Services

LOW CREDIT SCORE? HIGHER FHA DOWNPAYMENT!

The Federal Housing Administration has announced that it is raising its minimum down payment for buyers with lower credit ratings.

Those with a credit score below 580 can now expect to put down at least 10-percent.

LOW CREDIT SCORE? HIGHER FHA DOWNPAYMENT!

Those whose credit score is above 580 can still put down only 3.5-percent.

Upfront mortgage insurance premiums for those with below a 580 credit score will also increase from 1.75% to 2.25%. The FHA will reportedly seek Congressional approval to raise the amount of "annual mortgage premiums" over the life of the loan. The current maximum is 0.55-percent.

Just a personal sidenote: We're sometimes seeing problems for borrowers with a credit rating below 620!

Check out Reuters for more on this news: http://in.reuters.com/article/governmentFilingsNews/idINN1910413620100120

 

FIND A HOME: http://markostrovsky.com

Posted by

Mark & Elly Ostrovsky

Howard Hanna Smythe Cramer

Cellular: 216.577.1156

EMail: EllyandMark@GMail.Com

Website: http://MarkOstrovsky.Com

 

Mark is a licensed attorney in Ohio & in Massachusetts and works with his wife Elly in residential real estate representing buyers and sellers in Cleveland, Ohio's Eastern suburbs. You can search for homes on their website:

FIND A HOME: http://markostrovsky.com/

 

 

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Rainer
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Aaron Cullen
Brokers Inc. Residential Real estate - Folsom, CA
Folsom, El Dorado Hills & Sacramento Real Estate &

Its a sign of the times. 70% of my deals were FHA last year!

Jan 20, 2010 06:36 AM #1
Rainer
41,331
Mark L. Ostrovsky
Howard Hanna Real Estate Services - Beachwood, OH
Howard Hanna Real Estate Services

Thanks Aaron ... I think 70% is around the norm these days of most loans

Jan 20, 2010 07:02 AM #2
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Rainer
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Mark L. Ostrovsky

Howard Hanna Real Estate Services
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