1) There will be new loan-to-value and credit score requirements. A FICO score of less than 580 will require a minimum of 10% downpayment.
2) A 3.5% downpayment continues to be acceptable for those with a FICO score of 580 or above. The upfront insurance premium will be increased to 2.25% (currently 1.75%).
3) Allowable Seller Concessions will be reduced from 6% to 3%.
4) Stronger enforcement of FHA standards & guidelines for lenders. Lenders will be ranked by performance.
The timing for these new guidelines to kick-in is the spring and early summer. Long Island homebuyers will be required to pay more money to obtain an FHA mortgage. The best time to buy is Before these new guidelines go into effect. To read the full statement click on FHA Report.
DON’T FORGET! You MUST be in contract by April 30 and Close by June 30 to take advantage of the The First Time HomeBuyer and Repeat Buyer Tax Credit. See Video with details on my Blog Post.
Contact Cheryl Grossman at firstname.lastname@example.org for more information or to discuss your housing needs.