HUD Announces Major Changes to FHA Loans Today!
As if the housing market doesn't have enough woes, the loan situation is continuing to challenge our already small buyer pool. Read on....
- HUD announced today some major changes to FHA today. There is no date yet as to the effective date of the changes, but it should ignite a fire under those buyers who were sitting on the fence and thinking about an FHA loan.
- The Up Front Mortgage Insurance Premium is going to be raised from 1.75% to 2.25%. That does get rolled into the loan, but paying another .50% in that fee is quite a jump. (on a 200,000 property, that is almost another $1000 in UFMIP)
- The down payment is said to jump to 10% for those with credit scores below 580. But to be honest, there aren’t very many investors that will lend below a 620, even though FHA will go lower.
- Seller Credits are going to be capped to 3% (from 6%)
- And it will need to be approved still, but they are also wanting to increase the monthly Mortgage Insurance as well.
- All big changes that will help FHA, but could hurt some buyers abilities.
- Again these changes will come into effect sometime this ‘spring’. Once we see a date, I’ll pass it along.
Today’s Market Barometer: (30 day lock, 20% down, O/O, Excellent Credit… Always call for an exact scenario quote)
30 Year Fixed 0+0 (no points) = 5.125% 5/1 ARM 0+0 = 4.00% 30 Year Fixed JUMBO 0+0 = 6.125%
30 Year Fixed 0+1 = 4.875% 5/1 ARM 0+1 = 3.625% 30 Year Fixed JUMBO 0+1 = 5.75%
Let me know if I can help: FHA, VA, USDA, Jumbo’s…we got ‘em,we close ‘em!
Ananda Lantaff, Bank of Commerce, Boulder, CO Email: ananda@boulderfinance.com