FHA Down Payment to Rise to 5%? « FHA Home Loan Blog

FHA Home Loans are quickly becoming the best First Time Home Buyer Home Loan program available. FHA Mortgages offer low Mortgage Rates for home purchase or refinance. First Time Home Buyers can also take advantage of the $8000 First Time Home Buyer Tax Credit currently offered for anyone who hasn't owned a home for the past 3 years. If you currently have an FHA Home Loan, you can take advantage of the fast and easy FHA Streamline Refinance Loan to lower your payment today.

FHA DOWN PAYMENT TO RISE TO 5%?

DECEMBER, 2009

First Time Home Buyer Tax Credits.

The lowest (government influenced) rates in 50 years.

Home affordability index at all time highs.

Home prices deflated.

The hardest time to qualify for a mortgage in decades.

It seems ironic that at a time when the government is doing everything they can to coax people into buying homes, underwriting standards continue to get tighter every day. The latest change to guidelines will make it even more difficult for people to qualify for an FHA mortgage. Down payment requirements are proposed to change to 5% of the sales price of the home.

For most FHA home buyers, the 3.5% down payment requirement we have seen for the past year is hard enough to save for. Now, the government has deemed it necessary to increase the down payment to 5%.

It's not hard to see why. FHA deliquencies are at all-time highs, and FHA mortgages now comprise over 20% of all mortgage originations in the marketplace, up over 100% from previous years.

Credit score standards are also increasing, and most lenders now sit at a minimum credit score requirement of 640.

December 14, 2009 17:16

:: FHA Program News :: comments (0) ::

1 - 1 of 1

Subscribe/ RSS

Subscribe to FHA Home Loan Help by Email

Subscribe in a reader