Buy a House Fast

A couple months ago, we mentioned how changes to FHA rules were getting tougher in the future.  The future is almost upon us now – when considering the Mortgage Insurance Premium Factor.  so if you’ve not been assigned an FHA case number by April 5, you will be paying 2.25% rather than 1.75% for your home loan.

The 2.25% fee is an upfront fee for now, although it will annualize in the future.  It is still financed over the cost of the loan.

This rule is one of a series of changes meant to make FHA stronger in the face of growing delinquency.  Other rules include increasing the percentage of down payment for buyers with credit scores under 580 and lessening the amount a seller can contribute to closing costs. These will be effective this summer.

FHA is committed to helping more people have access to home ownership but according to Federal Housing Administration (FHA) Commissioner David Stevens, the changes are necessary to strengthen capital results while upholding other goals.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important. When combined with the risk management measures announced in September, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”

Despite the rate hike in mortgage insurance, FHA is still a good deal for most borrowers.

Express Realty Services can help you find a great affordable home in DC, Maryland, or Virginia.  Contact us today for details.