On October 1, the Federal Housing Authority (FHA) went through some significant changes which many are confused about. Let me clarify some of these changes:
The downpayment for a new home purchase using a FHA Mortgage is now 3 1/2% of the purchase price, up from 3%.
Seller downpayment assistance (DPA) is no longer, though the buyer can still receive "gift funds" or downpaymet assistance from an immediate family memeber, employer, church or other charitable organizations. The key here is the seller can no longer provide the DPA.
Up to 6% in closing cost/pre paid items assistance is still available from the seller provided the seller agrees to assist with this.
I hope this clarifies some of the confusion about changes made to FHA loans as of October 1, 2008. Please contact me for more information, if you have questions, or have a client needing a home loan at: 727-644-7541.
Truly,
Bill Cunningham
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