FHA Loan Guidelines changes Feb 1st, 2010

It is important for everyone to know that FHA Guidelines for new loans will change again around Feb 1st, 2010.  This will effect new buyers and those trying to sell a home. 

Changes are designed to help stabilize the market but the effect is to be determined.

The changes include:

1.Increase the up-front mortgage insurance premium (MIP) to 2.25%;
2.Update credit score and down payment requirements for new borrowers; (check with your loan officer) 
3.Reduce seller concessions to three percent, from six percent; and
4.Implement a series of significant measures aimed at increasing lender enforcement. 

Obviously these changes will:

For new buyers- you will need to Save and come up with more of your own money for closing cost and down payment requirements.

Thus Creating a stronger buyers market.  There will be less buyers in Hampton Roads and every where else ready to buy(preapproval and money in hand) ready to qualify for the already thousands of homes on the market.  But for those buyers that are ready this will put you in a great position to try to get a deal on price. (If the owner has equity and if the property meets FHA Appraisal guidelines) Because, you will have less competition.

Sellers will have even more competition and may be forced to do more short sales as comparable properties will start reducing prices to attract the qualified buyers, More owners will owe more than there home is now worth (appraisal wise),  And in this area with military moving in and out this will be a big problem. I can see the Catch 22 starting to brew.
New Buyers- call your lenders to discuss the changes with your lender asap.  You must understand how this will effect you before you can write an off
This info brought to you buy The Hampton Roads Real Estate Lady!

Visit my website,
Deandrea “Dee Dee” Jones
Associate Broker  Wainwright Real Estate     Virginia Beach, VA     DJones Real Estate Team
www.DJonesSellsHomes.com     blog: DJonesRealEstateBlog.info
I can help you relocate NATIONWIDE!

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About djonesrealestate

Contact me for all you real estate buying and selling needs in VA, DC, and MD. Need to find an agent in a different city- contact me and I can also help you relocate Nationwide! Let me give you the Red Carpet Treatment! I have been a Real Estate agent since 1996 previously licensed in California and Illinois, and currently licensed in Virginia, Maryland, and Washington DC. I am a mother of three and a Navy spouse, as your agent I am committed to exceeding your expectations. Whether you are a first time home buyer or some one who has bought and sold several homes I offer all my clients the benefits of professional customer service, industry experience, and innovative marketing. If you work with a church or non-profit group and would like me to host a home buying course. Please feel free to contact me! DeAndrea Dee Dee Jones Principal Broker DC, MD Realtor VA Home Buyers Marketing II, Inc HBM2, Inc. DJonesRealEstate.com

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