FYI,
I just wanted to pass this info along, as we are not experts but would like to keep you all informed.
The real estate industry is still waiting to see how the market will adjust after the expiration of the first-time homebuyer tax credit, but more consumer incentives are about to be cut, this time from the Federal Housing Administration (FHA).
The FHA will reduce allowable seller concessions - the percentage sellers can take from the sales price of a home to fund closing costs - from 6% to 3%. According to an announcement in January, the current level of 6% exposes the FHA to excess risk by creating incentives for appraisers to increase the value of these homes. The change will take place in "early summer," according to the FHA, but a spokesperson said no specific date has been set.
The closing costs include fees for origination, attorneys, appraisal and inspections, title search, title insurance, credit reports, and more. Down payment assistance is not included as a closing cost.
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