FHA Seller Concessions Policy to Change this Summmer

By
Real Estate Agent with Prudential California Realty

Hi my real estate home biuyers,

It's Duane White your FREE Real Estate Consultant with some valueable information on "FHA Seller Concessions".  Here is some information that FHA Buyer's should know about before it's too late.  Currently financing with a FHA loan allows for the seller to contribute a maximum of 6% towards the buyer closing cost and repairs.  Please note that FHA requires the buyer to provides their own funds of 3.5% down payment for the purchase.  Other than VA loans, this is the best deal around for home financing! 

Late this summer FHA plans to change the seller concession to 3% this is in an effort to limit further possible losses by cutting concession in half.  The agency siad the change would occur in "early summer" after the publicatin of a Federal Register notice and public comment period.  However, Lemar C Wooley a FHA spokesman, confirmed on May 19th that there had been no Federal Registration annoucement as of yet.

Since public comment are for a period of 60 day, I would say we are looking at late summer or possibly fall 2010. 

Keep it in mind,

Duane White, CDPE, PSC

 

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