Below are some of the upcoming proposed 2010 changes in FHA loan guidelines.  These changes are being made to FHA Loans due to rising defaults on FHA Loans.  Call your Mortgage Broker, TODAY, and find out if you qualify for a FHA Loan.  FHA Loans are a GREAT way to move into your first Home!  Don't wait.....CALL TODAY!

FOR RELEASE
Thursday
July 15, 2010

 

“These are the latest in a series of changes to allow the FHA to manage its risk better while continuing to support the nation’s housing recovery,” said Stevens. “By protecting FHA’s capital reserves, we can continue providing affordable, responsible mortgage products and will remain the nation’s largest source of home purchase financing for underserved communities.”

For the next 30 days, HUD is seeking public comment on the following policy changes, each of which are designed to mitigate risk to the Mutual Mortgage Insurance Fund while promoting sustainable homeownership for FHA borrowers:

1. Update the combination of credit and down payment requirements for new borrowers. New borrowers seeking FHA-insured financing will be required to have a minimum FICO score of 580 to qualify for FHA’s flagship 3.5 percent down payment program. New borrowers with credit scores of less than a 580 will be required to make a cash investment of at least 10 percent. Borrowers with credit scores of less than 500 will no longer qualify for an FHA-insured mortgage.
    
2. Reduce allowable seller concessions from six to three percent. Allowing sellers to contribute up to six percent of the home’s sales price to offset a buyer’s costs exposes the FHA to excess risk by potentially driving up the cost of the home beyond its appraised value. Reducing seller concessions to three percent will bring FHA into conformity with industry standards.
    
3. Tighten underwriting standards for manually underwritten loans. When using compensating factors in the underwriting process, lenders will be required to consider those factors which are the best predictive indicators of loan performance, such as the borrower’s credit history, loan-to-value (LTV) percentage, debt-to income ratio, and cash reserves.

Above new measures will help FHA control risk, continue supporting housing recovery



Other GREAT terms for FHA Loan Buyers:

 Loan amounts up to $729,750 in Los Angeles

 Down payments as low as 3.5%

 Gift funds allowed

 Flexible qualifying guidelines

 Fixed- or adjustable-rate loans

 Low, competitive rates

 Along with these new and proposed guidelines, and higher limits, you, the qualified buyer, will benefit from a FHA Loan - they are GREAT loans.  Call your Mortgage Broker TODAY or go to my "Helpful Phone Number" page for a qualified Mortgage Broker name and number.  The Mortgage Brokers' on my Web Site are experience and knowledgable in FHA Loans.  All of them have helped many of my past clients'  with FHA and Conventional type of Loans.  

In addition to the changes proposed, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

Feel free to ask me about HUD's available properties For Sale and/or FHA loan guidelines.  I am here for all your Real Estate needs!   My Cell #: (818) 535-6493

 
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Dawn Gonzales
REALTOR®
Cell: (818) 535-6493

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