Archive for November 13th, 2008

Long tailed cats, rockers & Charlotte mortgage bankers…Oh My!

November 13th, 2008 categories: Buying your Home, Market Trends

Sometimes I think Terry Stutts of WR Starkey must feel like a long tailed cat in a room full of rocking chairs ~ things are moving, changing position and his (our) tail is constantly trying to avoid the pinch! While all the news may seem bad the truth is their are some real opportunities for savvy and first time Charlotte home buyers alike. And YES you can get a mortgage ~ in fact in some cases you’re better off than before the mortgage meltdown!

Here is Terry with some very interesting and timely information on changing FHA requirements…

“There are some changes (what a surprise in today’s Charlotte mortgage industry) coming to FHA loans that you should know about. These changes will go into effect on January 1, 2009.  Currently, an FHA borrower is required to put a minimum investment of 3% of the sales price into the transaction.  This could be a down payment of 2.25% (plus .75% contributed to closing costs/prepaids).  Effective January 1, the minimum down payment on an FHA loan will increase to 3.5% and closing costs/prepaids can not be included as a part of this.  This basically means that as of January 1, the borrower for an FHA loan will need to come up with an additional 1.25% of the sales price.  This is an additional $2,500. on a $200,000. purchase price.

Sellers are still permitted to contribute financing concessions up to 6% of the sales price of the home. This 6% can be used to cover all or some of the closing costs and prepaids associated with the loan. FHA does still allow the down payment to be from either the borrower’s own funds or it can be a gift from a blood relative.

If you are considering an FHA loan and might be waiting to buy a home, this is a good time to consider the upcoming changes and how they might affect you.”

Authored by Mike Gibbons | Discussion: Your Comments Please »