Summer 2010 will bring changes to how the Federal Housing Administration looks at writing loans. Low reserves are forcing the FHA to tighten its belt. This will result in higher down payments for some, as well as, higher insurance premiums and reduced seller concessions.

The New Temporary Changes in the Guidelines

  • Increased Credit Score — Borrowers will need a minimum credit score of 580 to qualify for a 3.5 percent down payment. Currently, there is no minimum. Lower scores will be required to make at least a 10 percent down payment.
  • Increased Insurance Premiums — FHA-insured loan require insurance premiums be paid up front. This premium will now be 2.25 percent of the value of total loan amount, compares to the 1.75 percent it is now. These fees can be rolled into the loan amount.
  • Less Seller Contributions —Sellers will now only be able to offer as much as 3% of the property value help buyers pay their closing costs. The maximum amount of assistance will drop to 3 percent of the value of the property, current is 6 percent.

If you would like to learn more, have questions or would like help in applying for an FHA Mortgage please do not hesitate to contact me at Mark@Homes4UinTampa.com or via phone at (813) 849-8554.

Tampa FL Homes