FHA Guildlines are changing

FHA guidelines have changed;
There are some changes coming to FHA loans. I am sure some of you have heard or are starting to see contracts with the changes. Some of these changes are going to impact how we structure our loans and contracts. Below are the changes that we are expected to see!

1. Increase in up-front MIP. FHA will collect an upfront premium of 2.25%. Annual premiums will not change at this time. Effective 4/5/2010, Mortgagee Letter 2010-02

2. Minimum credit score increases.
3. Seller concessions will decrease from 6% to 3%. Effective date TBD. No mortgagee letter has been issued.
4. Suspension of flipping rule. There is nolong the 90 day wait period before an investor can sell.

The question is: Should we wait for prices to go down or rates to go up?

Should we wait for prices to go down or rates to go up???








Loan Amount   4.50%        5.00%         5.50%        6.00%       6.50%      7.00%
100,000     $506.69      $536.82      $567.79      $599.55      $632.07     $665.30


150,000     $760.03     $805.23      $851.68      $899.33        $948.10       $997.95


200,000     $1,013.37   $1,073.64   $1,135.58   $1,199.10     $1,264.14    $1,330.60


250,000     $1,266.71    $1,342.05   $1,419.47   $1,498.88     $1,580.17    $1,663.26


300,000     $1,520.06    $1,610.46    $1,703.37    $1,798.65   $1,896.20   $1,995.91


350,000     $1,773.40    $1,878.88    $1,987.26    $2,098.43   $2,212.24   $2,328.56


400,000     $2,026.74     $2,147.29    $2,271.16    $2,398.20  $2,528.27    $2,661.21




If I wait for that $400,000 house to come down to $350,000, could I be risking higher payments? Why yes, you could.....and why?


- $400,000 mortgage @ 4.5% = $2026.24


- $350,000 mortgage @ 6.0% = $2098.43


Does this ever happen? It's what we are watching buyers do right now!!


Don’t be a buyer that waits. Call me to help you find your dream home!

New listing just hit the market in Tucker Georgia...$170,000

Alpharetta Home for Rent!...Furnished for only $2450.00