As anticipated David Stevens, Commissioner of the FHA has announced new guidelines for FHA loans. “Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important” Commissioner Stevens stated in the announcement about the changes to the FHA guidelines.
What do the changes mean for Northern Virginia buyers?
*The upfront Mortgage Insurance Premium is now at 2.25%. The MIP can still be financed as part of the loan and does not have to paid upfront.
*A minimum FICO score of 580 will be required to qualify for a 3.5% down loan. Lower credit scores will require a minimum down payment of 10%.
*Seller concessions will be capped at 3% of the contract price of the home. This brings FHA loans in line with other loan programs current available.
There isn’t much in the announcement that is that is earth shattering for Northern Virginia buyers and does not include some of the changes that were rumored to be coming. If you are considering buying a new home this spring to take advantage of the First Time Homebuyers Credit now is the time to meet with a qualified mortgage professional to talk about how these changes to FHA loans might impact your qualifications.
If you need a recommendation for a great Northern Virginia mortgage professional give me a call at 703-346-2213.