2011 Fiscal Budget Lending Proposals Effecting Home Buyers and Real Estate Industry

By
Real Estate Broker/Owner with Weichert, Realtors® - SBA Group 9074493

There are new proposals made a part of fiscal year 2012 budget that will affect buyers' pocket and the Real Estate Industry;

April 18, 2011 - There will be a quarter of a percentage point increase to the annual mortgage insurance premium (MIP) on FHA mortgages.

Any new FHA loan will have an added premium of approximately $30 per month.

FHA conforming loan limits will drop back at the expiration of the Housing and Economic Recovery Act (HERA) on October 1, 2011.

A proposal of phasing 10% down payment for all Fannie Mae and Freddie Mac loans from the current 3.5%.

Implementation of these proposals are for market recover but in current situation they are only going to make matters worse. It will become much harder to get a loan for the average buyer with the much higher down payment requirements and very few homes would qualify in these programs with lowering loan limits.

For all your real estate needs; contact me to explore your options.

Muhammad Mushtaq
Principal Broker and Realtor (MA & RI)
REO Default Certified Professional (RDCPro)
Loss Mitigation Certified Professional (LMCPro)

S.B & A Realty Group, Inc. 10 Purchase St, Suite 301 Fall River, MA 02720 Off:    (877) 616-0330 Ext. 601 Cell:  (508) 982-4824 www.sbarealty.com

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