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Saturday, January 23, 2010

FHA Mortgage Changes Announced

The Federal Housing Administration announced changes to its lending requirements this week.

While the jury is still out on the impact, I believe on the surface these changes could impact some buyers ability to qualify for an FHA loan.

The 3.5% down payment requirement by the FHA will not change however some of the changes announced include:
  • minimum credit score of 580 to qualify for 3.5% down loan
  • 10% down if credit score below 580
  • allowed seller concessions changing to 3% from 6%
  • buyers pays upfront 2.25% of total loan as mortgage insurance premium (previously 1.75%)
The housing market has yet to recover from the recent correction and these tighter requirements will probably keep some out of the market. If you are considering buying a house or condo, talk with a local lender about your options - before you start looking for a house!

If you are in Brevard County, Florida call or send me an email if you have any questions.

Gary Waters, Florida licensed real estate agent, Bucci Realty, Rockledge, Florida. Email me at agent@moving2brevard.com or call 321-693-3850.

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