FHA Guidelines Change This Week!

Published 29 March 10 09:15 PM | The Sharon Stevens Team 

Looking to FHA for your next mortgage? Get a move on!  Although you have until Friday, April 2, 2010 to get your application in, Friday is Good Friday and most banks will be closed.

Your true FHA deadline is Thursday, April 1.

Guidelines Change In 3 Days

To shore up its balance sheet and dwindling capital reserves, the Federal Housing Authority is rolling out sweeping financial changes. Starting next week, FHA borrowers must to look better on paper and to be better credit risks.

Mortgage insurance premiums are rising, too.

In its official announcement, the FHA said its trying to better position itself to "manage its risk while continuing to support the nation’s housing market".

The changes start with case numbers assigned on or after Monday, April 5, 2010.

Reviewing The FHA Mortgage Changes

One widely speculated change wasn't made -- the increase of the FHA minimum down payment.  Homebuyers in North Florida and elsewhere can still buy with just 3.5 percent down.  However, the group did roll out a number of other changes, including:

  • An increase in Upfront MIP from 1.75 percent to 2.25 percent
  • A plan to reduce maximum seller contributions from 6 to 3 percent by summer
  • A Congressional request to increase monthly mortgage insurance premiums

 Article Courtesy of Matt Daly of Dolphin Mortgage..

To keep informed on up to the minute mortgage information subscribe to Matt Daly's blog.

Take a look at:

http://dalymortgageadvisor.thewrittenblog.com

 
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