I received this information from Kimberly Buttle, a loan officer with Metropolitan Mortgage Group today and thought to share it in case you plan on buying a home in this spring and hoping to obtain a FHA loan.
It’s January 31st and according to these proposed FHA changes, we have only 2 months left to assign our buyers with new FHA case Numbers before April 1, 2013!
Note that this is being proposed and not yet finalized – but I do expect most of these, if not all to be included
- Annual Upfront Financed Mortgage insurance premiums are proposed to increase from 1.750% to 1.850% (does not mention anything about monthly insurance premiums changing in this report.)
- Jumbo FHA loans ($417,001 to $506,000) will have the Annual Upfront Financed Mortgage Insurance increased from 1.75% to 1.80%
- Monthly Mortgage Insurance will remain in place for life of loan (currently is now required for 60 months minimum and 78% ltv)
- Is now Requiring Manual Underwriting on Loans with Decision Credit Scores below 620 & DTI Ratios over 43 Percent
- Jumbo FHA loans down payment to be increased from 3.5% to 5% down
- Foreclosures – 3 year waiting period from recording date but this does not guarantee a new FHA loan. (here’s where I help these folks re-establish new credit history which is one of several major considerations, along with strong savings and stable employment) I need to work with these buyers at minimum 12-18 months prior to purchasing their new home to ensure a successful loan approval. THIS IS A BIGGIE!
If you have questions, please contact Kimberly Buttle @ 206-799-0422.