FHA
Securing an FHA mortgage is about to get more expensive. In a statement issued Wednesday, the Federal Housing Authority outlined policy changes to its mortgage assistance program. The shift is meant to both reduce the government group’s portfolio risk while strengthening its overall financials. FHA has announced new guidelines for financing to be in effect this spring. In an effort to beef up the reserves for FHA, new costs will be associated with an FHA loan. For homebuyers with a credit score less than 580, the minimum downpayment will be 10%. For credit scores above 580, the downpayment is still...
HUD Homes are a Good Value HUD homes in Indianapolis generally represent a great value for the home buyer’s. Since the inception of the $8000 tax credit for first time home buyers, HUD owned homes have literally been “flying off the MLS active list”, with many being sold in the first ten days. As we near the end of the time frame for first time home buyers to receive the tax credit, REALTORS® in Indianapolis are witnessing a surge in activity and prices of HUD homes. Why the sudden interest in HUD homes? Although HUD doesn’t go in and repair...
Earlier this year — and for the first time in its history — the FHA changed its funding fees and mortgage insurance structure. Effective October 1, 2008, it’s repealing those changes. Partly to keep FHA home loans affordable, and partly to comply with new laws, the FHA is rolling back its up-front fees and ongoing mortgage insurance requirements and replacing them with new ones. The new up-front FHA fees are as follows: 1.750% : All purchase and “standard” refinances 1.500% : All “streamline” refinances 3.000% : All FHASecure programs for delinquent mortgagors These fees are paid as a one-time cost at...
