FHA Guidelines Change: The More You Know…

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.  Buyers with more “skin” in the game are less apt to walk away from their housing purchase.  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.  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]