FHA Loans

Well I have been writing about FHA loans for awhile now. FHA loans could be changing sooner than later. There is talk about raising down payments minimals from 3.5% to 5% which could mean on an average $300,000 dollar home you would be looking at an additional $4500.00. There is also talk about the upfront insurance premium going from 1.75% of the loan amount to to 3% of the loan amount, with the $300,000 example you would need $9000.00 for insurance premiums which is due at the closing of the home. FHA loans now allow a 6% sellers assist, that could change to 3% or even possibly 2%. Right now your allowed on a $300,000 6%(added to purchase price) or $18,000 in seller assist to go towards closing, that would change to a maximun of $9000.00(based on actual selling price). There is also talk about raising the annual insurance premium up from the now .55% of the loan. The annual premium on an FHA loan is added into the monthly mortgage payments. FHA loans which currently have no credit score minimal, it is based on individual circumstances, they are talking about needing a minimal credit score.

If your planning on using an FHA loan for financing, sooner than later would be best. Changes if they happen could take effect in early 2010.

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