FHA is pulling the belt tight

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It was a tough week on Wall Street but the mortgage rates ended a little lower for the third week of January. While China takes steps to slow its econominc growth and President Obama proposes new restrictions in lending the US is expected to lead to slower econominc growth at home.

FHA announced three major changes to help them build capital and reduce their risk. The first was to tighten it’s belt on credit scores. With FICO scores changing from 500 to 580 on buyers with less than 10% downpayment. Another major change was the increase in upfront premium from 1.75% to 2.25%. They also reduced the maximum seller contribution from 6% to 3%. The change in upfront premium will increase in spring and the other changes will happen over the summer.

With next Wednesday’s Fed Meeting we have to hope for better news.

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About Libbys' 411

Hello! I have been a Real Estate Broker for the Charlotte Metro and Lake Norman Area for 16 years. As a native of North Carolina I am able to share my knowledge of the area including business, housing market, recreation and great dining spots. Being a native of the area gives me the advantage of knowing many people. This is an advantage to both you and me! I get calls weekly from people that I know, looking to buy or sell their home or their land. I am unusually diverse in the area of Real Estate unlike many of my colleges, I also work with developers and builders as well as commercial leasing and land acquisition. Previous to being licensed as a Real Estate Broker I worked in the Real estate and Title Ins. Law field for 14 years. Having a Realtor with the amount of diverse and intimate knowledge of the total aspect of any Real estate transaction that I have is rare. I am waiting right now to help you. Thank you.

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