If you've been thinking about buying a new home with an FHA loan, you might want to give your lender a call! As of April 1 FHA has made some BIG CHANGES!
This flexible, low money down program is great for folks without much saved for down payment or who might need a family member's income to help qualify for a loan. With an FHA loan your entire 3.5% down payment can be a gift from family or if the house you find is a little more expensive than you planned, you can have family add a gift or be added to the loan to help you qualify. In this market having that kind of flexibility with your financing can sometimes help you win the home you love.
As of April 1 all FHA loans with 10% down payment or less now have mortgage insurance for the life of the loan. Monthly mortgage insurance is also going up by 10 basis points across the board. What does this mean for you? The same priced house will cost you more. Make sure to prepare for these changes because they affect your bottom line & your qualifying limits!
Thanks to Liana Pomeroy & Bill Rodriguez, CMPSâ„ for writing this article. Liana and Bill are The HomeW.I.S.E. Team at Residential Mortgage of Colorado, a division of Solera National Bank. Contact Liana and Bill at www.homeWISEdenver.com or 303.601.5197.
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