Dec 15 2009
Why Buy A Home Sooner Rather Than Later!
If you are thinking about buying a home in 2010, here are a few good reasons to do so sooner rather than later!
First of all, the current first-time and move-up home buyer tax credit expires on April 30th, 2010… so you’ve got less than five months to get into contract for a home. All sources indicate that the tax credit will not be extended again.
Second, the FHA has proposed significant changes to their loan program (and with well over 75% of first-time buyers loans these days being FHA loans you need to know about these changes), which will impact borrowers. The proposed changes include:
- Increasing the minimum down payment required on FHA loans from 3.5% to 5%. That means more money down required on your part.
- Increasing the upfront and monthly mortgage insurance premiums on FHA loans.
- Reducing the total closing costs allowed for seller to pay from 3% to 6%. Again, this means more money out of pocket at closing on your part.
- Requiring minimum FICO credit scores (which FHA has not required to-date).
- Requiring more control of FHA appraisals.
- Requiring FHA lenders to demonstrte higher minimum net worth to ensure ability to repurchase bad loans. This could reduce the number of lenders out there who can offer FHA loans.
Speak with your lender and your Realtor about these proposed changes and work on a game plan to ensure you can buy a home sooner rather than later.
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