FHA Home Loan Changes

The FHA has announced changes to their home loan program.  The changes include:

• Mortgage insurance premiums will be increased to 2.25%
• Borrowers will be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
• Allowable Seller concessions will be reduced from 6% to 3%.

If you are considering an FHA loan, make sure you talk to your loan officer to find out how these changes will effect your loan.

$8,000 Homebuyer Tax Credit

There is an $8,000 tax credit for homes purchased after Nov. 6, 2009, and before May 1, 2010. Home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010. 

Who is Eligible

• First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
• Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.