Kathy A. Torline-Nordstrom
Cherry Creek Properties, LLC
Serving Colorado Springs
Attention Colorado Springs first time home buyers
For a free Buyers Guide, Email Kathy Torline at [email protected]
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- Credit score explanation
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- 26 criteria used to determine interest rates
HUD Secretary Shaun Donovan recently announced some changes to FHA loans that could come as early as the first quarter in 2010. Since a large percentage of first time home buyers use FHA loans, some home buyers may want to get a home purchased before these changes come into affect:
Here’s a quick summary of some of the expected changes:
- Seller concessions may be reduced from 6% to 3%.
- Many buyers ask the seller to pay for all or a portion of their closing costs, and the lower seller concessions may make this more challenging to do.
- Minimum credit scores will be raised for FHA borrowers. (the speech didn’t give specifics on what this credit score was going to be raised to.)
- FHA borrowers may be asked to bring more money for a downpayment, currently it’s 3.5%.
- MIP (Mortgage Insurance Premiums) may be increased.
A complete archive of the written testimony is on HUD gov web site.
Here’s some trivia for you ………. FHA loans were originally created during Franklin Roosevelt’s era and were created to provide affordable home loan options. In 2009, it’s estimated that 30% of all loans and 20% of refinances are FHA loans; hence it’s definitely a major factor in the housing recovery.