The Mortgage Industry is an Ever Changing Industry
As I always preach, the mortgage industry is a constantly evolving industry. It seems like every day we get new regulations, new disclosure requirements and new guidelines. The newest batch comes from The Department of Housing (HUD) in the form of changes to FHA financing.
New FHA Financing Rules for San Mateo Borrowers
In an effort to strengthen FHA’s capital reserve and to manage their risk while continuing to support the nation’s housing market recovery, FHA’s Commissioner David Stevens announced the following policy changes that will affect all San Mateo FHA borrowers.
- For all FHA loans with case numbers that are assigned April 5, 2010 or later, FHA has increased their upfront mortgage insurance premium for purchases and non-streamline refinances from 1.75% to 2.25% of the base loan amount. For FHA to FHA streamline refinances, the increase is from 1.5% to 2.25%. Most San Mateo borrowers finance this upfront mortgage insurance premium with their loan amount, but you do have the option to pay this as a closing cost.
More Changes for San Mateo FHA Loans Scheduled for Later in 2010
Other announced changes that will take place later in the year are:
- Seller contributions towards a San Mateo home buyer’s closings costs have been reduced from 6% of the purchase price down to 3% of the purchase price. This means that a borrower will have to put more of their own skin into the game on top of their 3.5% down payment
- IF you want to put the minimum 3.5% down on your home purchase, you must have a credit score over 580. If you are 580 or below, you will be required to put 10% down on your purchase.
Considering an FHA Loan? Get it While Today’s Guidelines are Still in Place
With these impending changes coming soon to an FHA purchase near you, give me a call at (650) 520-0915 or send me an email at info@SanMateoMortgageBlog.com and let’s see if we can get a jump on your FHA financing while the current guidelines are in place.
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Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.
Related posts:
- FHA Streamline Refinance Guidelines Changing in 2010
- FHA Summer Preview: Creating Thrills for the San Mateo County Borrower
- Mortgage Interest Rates Predicted to Rise in 2010
- Consider this Before Determining Whether an FHA Loan is Right for the Bay Area Borrower
- 2009 FHA Loan Limits in San Mateo County
