http://www.realestateappraisertips.info/ - FHA Guidelines: Proposal Would Increase Downpayment, end Financing of Closing Costs
FHA Loan Pros is making more sense out of the FHA situation, read here.
Here’s a snippet:
“In a move intended to reduce taxpayers’ exposure to losses associated with defaulted FHA loans, legislation is being proposed that would tighten FHA loan requirements:
The minimum down payment would increase from 3.5% to 5% of the loan amount.
Closing costs would no longer be permitted to be “rolled into” the loan amount.
This would mean that potential homebuyers would need to have more cash available for coverin these costs. The principle concern behind these proposed changes is that lenient lending requirements can encourage people to take out home loans they;re not prepared to pay over the long term.
Demise of “Sub-Prime” Lending Increases FHA Market Share”
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