I just received a Fl-yer from one of my Lenders telling of FHA changes coming our way this Summer and I must say I have cause for concern!
The changes would raise the Mortgage Insurance Upfront Premium from 1.75% to 2.25%.
FHA is seeking Legislative Approval to increase the Annual Premium which would then shift some of the Upfront Premium to the Annual MIP.
Additionally the Sellers Concessions will Decrease from 6% to 3%.
We currently have the ability of telling our customers about the Tax Credit currently on the table and it appears there truly has never and will never be a Better Time To Buy!
As Realtors the things to come DO NOT seem very pleasant!
I would like to be able to sit at the table with the Powers That Be and say: "WHAT ARE YOU DOING?"
Lets re-cap this situation.... Tax Credit Ends, Sellers Concessions Reduced, Mortgage Insurance Premiums Increased, Appraisal Process truly Messed Up- Bunching foreclosures with Home Sellers. Does this about sum it up?
I thought the plan was to stimulate the Housing Market? I know as well as you do we need some checks and balances but, I feel we are going in the wrong direction. I am in the South but, it is my opinion these plans are truly Headed South!