Joseph Whitley Real Estate

This is great information.  Please read.

“The Federal Housing Administration will raise the minimum down payment for its least credit-worthy borrowers, agency announced Tuesday.

Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency’s finances.

The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, paid by borrowers over the life of the loan, above the current 0.55 percent maximum. The amount it will seek has yet been announced.”

Source: Reuters News, Corbett B. Daly (01/19/2010)

Required if you are purchasing a home…

• …between the 91 – 180 day after the seller acquired the property.
• …where the purchase price is equal to/more than 100% of the purchase price paid by the seller when they acquired the property.

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-48ml.pdf

Note to All:  The homeowner is not to pay for the second appraisal per FHA Guidlines.