Don't forget-because it's just around the corner, that FHA down payment changes go into effect on January 1st. The changes will be.....
- Down payment minimum of 3.5%. Currently it is 3% total but in most areas it is 2.25% down with .75% being able to come from closing costs. Not anymore.....now it is 3.5% plus whatever closing costs are involved unless seller pays them subject to 6% seller contribution maximum).
- The loan amount included the upfront Mortgage Insurance (UFMIP) can not exceed 100% of purchase price or appraisal-whichever is less.
Acceptable gift funds may still be used (relative, employer, etc.....just not the non-profits) and cash out refinances are still at 95% Loan to Value
- FHA Maximum Loan amounts are DECREASING for the Twin Cities 11 county metro area
- Currently: $365,000
- Revised $318,550
Outside of the Twin Cities metro area the maximum loan amount will remain unchanged @ $271,500
Don't get to the closing table only to find out things are no loner approved.....Double check with your lender to make sure your approval and/r pre-approval letter is still valid!
BTW, rates have dropped so please keep me in mind!