FHA loans will no longer allow 6% seller closing costs credits to buyer
Posted by Tony Kawaguchi, RA on Thursday, January 21st, 2010 at 12:56pm.Well, HUD is at it again. It will go into effect sometime
in the summer, but FHA loans will be limited to 3% seller concessions
instead of the 6% currently allowed.
This won't mean much for higher priced homes but it will
cause people buying lower priced homes, which tend to be the people that
need the help the most, to have to come up with more money.
Basically this is another case of the government hurting people by trying to help them.
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Share5 Responses to "FHA loans will no longer allow 6% seller closing costs credits to buyer"
Dan Edwards wrote:
This is rather unfortunate, I know there has been some abuse, but do we really need more restrictions for buyers right now?
This is rather unfortunate, I know there has been some abuse, but do we really need more restrictions for buyers right now?
Posted on Tuesday, January 26th, 2010 at 11:27 PM.
Genuine Mortgage Advice wrote:
I agree Dan. Some of these restrictions are just going to slow down buyers from buying.
I agree Dan. Some of these restrictions are just going to slow down buyers from buying.
Posted on Friday, March 12th, 2010 at 8:09 PM.
Chris Smith wrote:
Many of our local sales are for $125K or less. Closing cost plus impounds can run as high as 5%. With the 3% limit, a lot of our borrowers will need 5 - 5 1/2% to close on a home. This is just making it harder to get people into homes.
Many of our local sales are for $125K or less. Closing cost plus impounds can run as high as 5%. With the 3% limit, a lot of our borrowers will need 5 - 5 1/2% to close on a home. This is just making it harder to get people into homes.
Posted on Saturday, March 13th, 2010 at 12:42 PM.
Genuine Mortgage Advice wrote:
There was a recent meeting with HUD officials about the FHA down payment minimum increasing. They are going to hold off on this, because they figured that could affect 40% of the loans. That's a large piece of the pie.
There was a recent meeting with HUD officials about the FHA down payment minimum increasing. They are going to hold off on this, because they figured that could affect 40% of the loans. That's a large piece of the pie.
Posted on Monday, March 15th, 2010 at 11:04 AM.
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This has been talked about, but it is not been implemented. The most recent hud mortgagee letter #2010-02 outlines increase in upfront MIP to 2.25% April 5th, 2010.
No other changes are official.
Posted on Tuesday, January 26th, 2010 at 4:43 PM.