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San Diego Home Buyers Are You Aware of the New FHA Changes?

Home Buyers do You Know About the New FHA Rules

The Federal Housing Administration

(FHA) have recently announced some new rules for FHA borrowers. If  you are considering buying a home you do need to be aware of these new rules as they will effect you,  this might make qualifying for a home loan a litttle more challenging.

• The minimum credit score requirement for new borrowers has been raised to a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10 percent of the purchase price of the home. FHA expects this to take effect in the early summer months.

• Allowable seller concessions will be reduced. The agency is lowering the maximum permissible level to 3 percent from its current 6 percent limit. FHA expects this also to take effect in the early summer months.

• The up-front mortgage insurance premium will rise to 2.25 percent from its current 1.75 percent. HUD is expected to release a Mortgage letter towards the end of January making the premium increase effective this spring.

 If you are thinking of buying a home it might be wise to move forward and purchase as soon as possible.

We are available to help you through every step of your home purchase. Please give us a call to schedule an appointment.

Pam Parton  760-580-1615             Joanna Woolley  760-580-1630