FHA Home Buyers Faced With Sudden Changes
If you are like most first time home buyers, buying the home of your dreams requires your loan to be back by the Federal Housing Administration, because of the securities that it provides to the lender. However, buyer be aware, the current FHA standards allow for a FHA approved loan to only commit 3.5% down initially and the seller contributes 6% of the closing costs. Due to the new and more stringent rules from the Federal Housing Administration and allowing for more protection to the administration, FHA is setting rules in place that will require at least 10% down if your credit score is below 580 and they can deny giving loans to credit scores below 500. Sellers also will only be able to contribute 3% towards closing costs. 
This may or may not make as large of an impact as you might suspect. With sellers expecting to accrue more closing costs from FHA buyers, they have been known to raise the price. With this new proposal you may start to see prices stabilize for all buyers. While FHA loans have proven to show a rebound for the lower ends of the market, experts believe that this will not hinder too much on home sales, rather you will see the outcome come with even lower home prices for FHA buyers, which will continue to boost the lower end of the market.
Never the less, if you are planning to finance your home through an FHA backed loan, be sure to educate yourself on the ever-changing restrictions or consult a mortgage broker to find out the right mortgage for you.
Ask yourself, what is the amount you are prepared to put down? 
How much are you willing to spend? What area can you find a home for that price? What features do you need in a home? Ask yourself these questions before prompting your search. Consult your local real estate agent to help accommodate your parameters to find the perfect new home!
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