Mt. Hood FHA Loans to Tighten!
Monday, December 7, 2009
If you are contemplating using an FHA loan for your purchase in Welches, Government Camp, Rhododendron or Brightwood, take note! HUD secretary Donovan is promising in 2010 qualifying for an FHA loan will tighten up with credit qualifications and higher fees.
Changes may include the following:
1. A higher downpayment requirement from 3.5 to 5%.
2. Seller paid closing costs reduced from 6% down to 3% of the loan amount.
3. Higher mortgage insurance premiums! Currently 1.75%
4. Higher credit standards.
Bottom line, look for 2010 to cost a buyer even more to get a loan with stricter guidelines.
If considering purchasing a home now, get your application in before things tighten up even further.