This one bothers me. It feels "anti FHA". But it is what we have to look forward to.
On January 1, 2009 the guidelines for FHA Down Payments change.
Currently a buyer can put as little as 2.25% on the typical FHA transaction with the only caveot being a 3% down payment if the seller is paying all of your closing costs.
as of January 1: there is a flat down payment of 3.5%.
That may not sound horrible, but to put a $ number on that it will hurt. on a $250,000 purchase the down payment will have to be $3,125 higher than it does today. That is significant.
If you are currently in the market for a home and were looking to put a small down payment there are only a few short months left to get in under the old guidelines and save yourself thousands of dollars. the clock is ticking!
With prices being down and interest rates at favorable levels 2008 is already the year to buy... this news just adds yet another reason
Have a great week
Rob
Real Estate Mortgage Network
Hi Rob, you are right - on it's own the number doesnt sound so bad....until you convert it to dollars! Thanks for the info, I'm sure to share it with clients and customers alike. Hope all is going well at the new office :)
HI Kara!!!