FHA Changes on April 5th, 2010: 3% Seller Contribution Maximum
Updated 9/08/10
FHA has postponed the respective changes until further notice.
It must be noted that they are seriously enforcing changes to the program, however it is now being reviewed for a timely implementation.
And if you think things could get any tougher for an FHA borrower!
In an effort to tighten up its latest embarassment, (FHA's balance sheet and dwindling capital reserves), the Federal Housing Authority is rolling out sweeping financial changes that can affect you or your customers. FHA borrowers will need to look better on paper and be better credit risks moving forward in 2010.
To boot, Mortgage insurance premiums are rising from 1.75% to 2.25%.
Click for major FHA Changes on April 5th.
Wow! Well, when the going gets tough.....
We'll lose some more Realtors and Loan Officers. We'll have to work a little harder at educating our buyers (AND sellers) about the realities of financing.
Tell me about it!! Everyone was scared of the 5% down payment well here it is except delivered to us on a different platter..
The last I read, the 3% seller contribution limit was only opened for discussion and not yet an approved change. The approval and implementation is not expected until later this year. The mortgagee letter from January only announces the MIP changes.