| Future changes with FHA: | | | | 580 to qualify for 3.5% down, if score less than 580 |
| FHA financing requirements, change from time to time | | | | must have 10% down this will go into effect in early |
| to match the market and the risk of loss. Since the | | | | summer |
| collapse of the financial markets in 07,08 FHA financing | | | | Seller concessions will be reduced from 6% to 3%, will |
| has been the primary source for home buyers to | | | | be posted in February will go into effect in the early |
| obtain a real estate loan with a low down payment. | | | | summer. |
| This is the reason for the changes you are about to | | | | Lender performances, Neighborhood watch will be |
| see. | | | | available on HUD website on February 1 |
| Imagine the market slips by another 5-10% and the | | | | Enhanced monitoring of lender performance, implement |
| unemployment numbers go about 10%, many | | | | credit watch termination through lender underwriting ID |
| borrowers who used FHA financing in the past 3-4 | | | | in addition to origination ID will be released in Mortgagee |
| years could find them selves in foreclosure or needing | | | | Letter tomorrow Jan 21 and is effective immediately |
| to do a short sale to get out of their home because | | | | Pursuing authority to increase enforcement on lenders |
| they have little to no equity in their home. FHA being | | | | to assume liability for all the loans they originate and |
| the #1 source for finding for these low down payment | | | | underwrite |
| loans could find them selves in a very bad situation. | | | | Legislative authority permitting HUD flexibility to |
| The tax payers could also be facing another bailout. | | | | establish areas of review and termination to withdraw |
| So in order to protect government backed loans and | | | | originating and underwriting approval for lender |
| us the tax payers these are the latest rounds of | | | | nationwide on the basis of the performance of its |
| changes. | | | | regional branches. |
| Initial up-front MIP increase will be raised by.50 to | | | | FHA financing is still the only program that allows a |
| 2.25% will be released in a Mortgagee Letter | | | | borrower to purchase a home with 3.5% down |
| tomorrow Jan 21 and will go into effect in the spring | | | | payment. These changes could effect your ability to |
| (example $200,000 loan cost the borrower $1,000 | | | | qualify for a loan so check with your lender to make |
| more, this is to help cover the losses already seen by | | | | sure you will meet the minimum requirements before |
| FHA) | | | | you make an offer. |
| Borrower will be required to have a min credit score of | | | | |