Getting an FHA mortgage on a home will get a little more difficult this spring and summer.
From the official announcement of the new FHA guidelines:
- Mortgage insurance premiums are increasing from 1.75% to 2.25% (based on mortgage amount)
- Sub-580 FICO scores will need to bring a minimum 10% in downpayment to the table
- Seller contributions to buyer’s closing costs and pre-paids is dropping from 6% to 3%
The good news with the new revisions of the FHA guidelines is that they are actively trying to avoid re-creating a similar situation that got the nation into the recent housing collapse. Â Buyers with more “skin” in the game are less apt to walk away from their housing purchase. Â Additionally, the guidelines spell out stricter guidelines for lenders and underwriters to follow.
Along with the April 30th, 2010 deadline for the existing homebuyer tax credits (up to $8,000 for first time buyers and up to $6,500 for everyone else), these guidelines are good to keep in mind for any purchase you may be considering this year. Â If you are thinking of purchasing a home in the Plymouth, Michigan housing market, contact us for a list of homes that meets your criteria.
For further information about the FHA guidelines or mortgages in general, give Ken Turkington with First Commerce Financial a ring at 248.912.1004.
[hat tip to our friend in Philadelphia, Bill Lublin]