Rules by which YOU obtain a Mortgage are Changing

I’m pleased to introduce a guest blogger to my site, Laurie Ausmus of Peoples Bank to discuss current mortgage lending.  Welcome Laurie!

Hi there!  My name is Laurie Ausmus and I am a Real Estate Loan Officer at Peoples Bank.   I am working with Terri Hermes of Windermere to keep you all informed of  our ever changing industry.   Last year, we received over 280 memo’s changing our rules and guidelines.  The good news is there is still money to lend if you can meet these requirements.  FHA (Federal Housing Administration) has announced the following guideline changes as of April 1st:

The upfront mortgage insurance premium (UFMIP) will increase to 2.25 percent up from 1.75 percent.   But not to worry, you can finance this amount it does not have to be paid upfront.

Borrowers with a credit score below 580 will be required to have at least a 10 percent down payment. The minimum down payment will remain at 3.5 percent for all other borrowers.

FHA would like to increase the annual premium currently capped at .55 percent.  For example on a loan amount of $100,000.00 currently you would pay monthly mortgage insurance of $45.83 per month.  I really hope they don’t succeed in raising this!

Seller paid closing costs will be reduced to 3 percent from 6 percent.   Please note that closing costs rarely exceed 3% anyway so this shouldn’t affect anyone too much!

Terri and I will do our best to keep apprised of the significant changes that come up in our industry.  In the meantime, we offer free qualification for new home loans, with a free credit report and credit score evaluation.

ALSO, the tax incentives run out on April 30th so please hurry if you would like to take advantage of these awesome savings!

We welcome your phone calls and questions.  Please do not hesitate to call if you need anything!

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