FHA Changes Coming Our Way

By
Real Estate Agent with Coldwell Banker Kinard Realty

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!

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Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

If buyers realize that this is a good time to buy, they will make up their minds to buy soon.

Jan 24, 2010 12:24 AM #1
Anonymous
Anonymous

It sounds like good news about the credit score though!  Above 580 qualifies for 3.5% down, that seems to be a little lower than it was before, which would open up the market for more buyers that have a little better credit?  And if it is under 580, you must put more money down but really that should be expected.

I completely agree that we should be moving forward instead of backward with mortgages!  I can only imagine as hard as it is for Realtors, it must be even harder for lenders!!

That just goes to show, buyers need to buy NOW!!!

 

 

Jan 24, 2010 12:42 AM #2
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Rainer
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Paula Roberts

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