If you wait a few more days or weeks to purchase a home, you could lose thousands of extra dollars. Why? Because the Housing and Urban Development (HUD) is implementing several changes for loans guaranteed by the Federal Housing Authority (FHA).
These changes are coming shortly before the April 30th First Time Home Buyer Tax Credit deadline, and just after the March 31st experation of the Federal Reserve Board's mortgage backed securities purchase (which has kept home loan rates artificially low for over a year now), these FHA changes make it even more important to act now to save BIG!
In case you have not heard about these changes, here is a quick explanation:
- March 30, 2010 - Federal Reserve Board is no longer purchasing Mortgage Backed Securities (MBS) which has been keeping mortgage rates at historic lows.
- April 5, 2010 - HUD is implementing new requirements for Up-Front Mortgage Insurance (UFMI). Currently, the amount of UFMI is 1.75% and is increasing to 2.25%. What does this mean? For a borrower purchasing a home for $200,000 with a $7,000 down payment, the UFMI will increase by $965. Typically, this amount is financed into the loan, so the mortgage payment increase will be minimal, but overall the fee is increasing for the buyer.
- Later this Sping - HUD will implement the reduction fees allowed to be paid by a seller. Currently, the seller can pay up to 6% of the buyers closing costs. This percent is decreasing to 3% maximum. Using the same example above, a home buyer purchasing a $200,000 home will lose on "seller concessions" by $6,000.
How do you avoid this loss? GET OFF THE FENCE! Submit your FHA Mortgage Application by the last week of March.
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Are you are looking to buy or sell a home in Frisco Texas or another city in North Texas? Perhaps you love your home but would be interested in refinancing to a lower interest rate? If so, then I can help.
I'll help you get pre-approved for your a new home loan in Texas and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice. If you are available to talk, I am available to listen. Give me a call any time or visit my website for more details.
Do you want to know all of your mortgage options? Call me today and let's discuss them further.
Always available for your Texas Mortgage needs!
John Cannata LegacyTexas Mortgage p#972.325.4912
Frisco Texas Mortgage Consultant
The views expressed on this site are mine alone and do not reflect the views of my employer.
Nice call to action!... I hope it works for you.
Thanks for the updates.
Thank you Wayne & Lynda.
You are very welcome Pete.
Thank you both for your comments.
Great shout-out John! It's all about getting word out before these incentives end it's too late and the butt-kicking begins!
Hopefully many homeowners wont let the opportunity pass, Wanda.
All the more important to make a difference in holding off or acting now!
Great info John. It is a good time to buy now.
John,
Once Again, Excellent Info.
Thanks for making it clear and concise
Have a great day
Leander
Loreena and Mike - Thanks for the comment.
Leander - I hope its not too cold in NJ. Appreciate the comment.
John ~ Great presentation and bring in the buyers!
Hopefully more buyers will get moving for all of us, Monique.
John this post should certainly make a few buyers get off the fence.
Jennifer - Where ever they live, they should get moving. Thanks for the comment.