FHA Mortgage Changes - Effective April 5th, 2010

New Year brings some minor changes to the FHA Program. FHA =(Federal Housing Administration).

What is FHA?

FHA loans have been helping people become homeowners since 1934.

How do they do it?

The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.

Low down payments
Low closing costs
Easy credit qualifying

CHANGES FOR 2010:

FHA Currently Collect a premium of 1.75%

Effective April 5th, 2010 FHA will now collect an upfront mortgage insurance premium of 2.25% for the following:

Purchase Money Mortgages and Full-Credit Qualifying Refinances = 2.25 percent
Streamline Refinances (all types) = 2.25 percent
HOPE for Homeowners (Delinquent Mortgagors) = 2.00 percent
Home Equity Conversion Mortgages = 2.00 percent

This might seem like a hit to the housing market. To buyers this will be a small increase in your monthly payment.

Is it too soon? You be the judge!

Please contact a HUD approved Lender for details!

CLICK HERE to Visit HUD's Website and Learn more!