Because FHA's capital resrve fund is low they have announced major changes in loans, The mortgage insurance premium (MIP) is increasing from 1.75 to 2.25 percent Anyone with a credit score below 580 will now need 10% down payment. Seller assist will be reduced from 6% down to 3%
The good news is that the tax credit for qualified 1st time buyers is still available. This credit will go away for anyone who is not under contract by April 30th. The credit has been an important factor in the recovery of the real estate market in Delaware County. It will be interesting to see what effect these changes will have to our local market. So if you know anyone who is on the fence about buying tell them now is the time. When these programs go away buyers will need a lot more money to purchase their first homes.
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