It may become more difficult for a home buyer to obtain FHA financing. In Washington there’s pending legislation to increase the requirements for buyers using FHA as the source of their home financing. These new regulations would make it more difficult for buyers to qualify. It’s called the “FHA Taxpayer Protection Act of 2009″. The reasoning behind the new regulations is to shore up the stability of FHA – this in itself is a controversial topic – FHA maintains reserves in the event of borrower defaults – how much should be in those reserve accounts and how they are calculated are often disputed – go figure, right!
Here’s the bottom line of the new proposed FHA Home Loan Requirements:
1) Increase the minimum buyer down payment from 3.5% to 5%
2) Reduce the amount the home seller can contribute as concessions (seller paid closing cost) from 6% down to 3%
3) Raise the minimum credit score requirement
Just a heads up – if you’re planning to purchase a home using FHA, now may be the time – before it becomes more difficult!
Thanks for Reading our Cary Real Estate Blog. Post Authored By: David Williams
David’s a Licensed North Carolina Realtor & The Voice of CaryRealEstate.com