If you’re a first time homebuyer, things can be pretty confusing right now. With the tax credit deadlines, who qualifies, new F.H.A. standards, etc. there’s a lot to keep up with.
Just recently the Federal Housing Administration announced they are going to be increasing the mortgage insurance premium on F.H.A. insured loans. The new premium will be 2.25%, a .5% increase from what it was before.
In addition to the insurance premium, beginning this summer sellers will only be allowed to contribute 3% to closing costs, down from the 6% initially instated. Lenders will also see some changes. They will be held more accountable by having to publicly report their performance rankings.
These changes may seem drastic, but they are aimed to shore up the agency’s finances while screening out unprepared borrowers which essentially got us into this mess in the first place.