The FHA is doing its part to insure that it will be able to keep financing new homes
The past few years have not been easy in the housing sector and the FHA is working hard to assure its stability in the market. Created to insure that people could purchase affordable homes and catering mostly to the first time home buyer, the FHA is an integral part of the real estate business and keeping the association healthy is important to communities around the country.
The changes that the FHA is making to insure its survival are as follows:
- · The mortgage insurance premium will rise. It will now be 2.25% of the loan amount as opposed to 1.75%.
- · New Borrowers will have to have a FICO score of 580 or more to qualify for a 3.5% down payment, those with a score of less that 580 will have to put a 10% down payment toward their new home.
- · Seller concessions are being reduced to 3% from 6%, to limit any inflation that can occur on the price of a house.
- · FHA lenders are going to be carefully scrutinized to make sure that they are adhering to FHA rules and regulations.
The FHA has helped to put many people into new homes since its inception in 1934. Its changes reflect its desire to continue to help many more for years to come.
For more information please contact me at 818.269.5550.
You may also visit my wesbite: http://www.caroledelacruzrealty.com/
or email me at: carole@caroledelacruzrealty.com
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