OK you read the title and now you think I flunked 3rd grade spelling! Actually the title says exactly what I want it to say! If you are in the market to purchase a home, do it now because in a few weeks, April 2010 to be exact the cost of purchasing a home is going up.
- FHA MIP (upfront mortgage insurance premium) increases from 1.75% to 2.25% of the loan amount.
- Seller contributions to the buyer will be cut in half! Where once 6% was allowable now only 3% is allowed.
- Buyers must have a FICO score of 580 or better to qualify for the 3.5% down payment, which makes getting an FHA loan so attractive.
This isn't the first time I've talked about the FHA Guidelines changing. Every aspect of real estate has been going through dramatic changes, from lending guidelines to appraising practices. We are all learning how best to deal with the changes so the consumer is not left out in the cold.
Denver Home Purchase is Possible
Home ownership is very possible for those who have maintained their credit standing, avoid excessive debt and save for a down payment. It all makes sense.