Landon Huffer- Texarkana Real Estate Broker

FHA Tightening up Their Lending Requirements | March 1, 2010

Looks like it is going to become even hard to get a home if you are looking at going FHA.  FHA is the most popular means of obtaining a home mortgage for first time buyers and one of the most used means of purchasing a home for all buyers.

Along with losing the tax credit and interest rates going up this is only going to hurt the housing market even further. 

The following changes are going to be made to FHA loans:

1.  Mortgage insurance costs are being raised from 1.75% to 2.25% of the loan amount.  Even though this fee can be financed in with the loan it is still going to increase your monthly payment.

2.  For borrowers with under a 580 credit score you will now have to put 10% down instead of the previous 3.5%.  For borrowers with a credit score over 580 the down payment will remain the same.

These will be in effect some time this spring.

It will be interesting to see how this is going to effect the market.  Of course I will keep you up to date.

Landon Huffer

www.txkbroker.com

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Posted in Real Estate

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About author

I am a young, eager, and aggressive Real Estate Broker with Schimming Company Commercial Real Estate.

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