The FHA has made several changes to its lending programs that go into effect at the end of January. Say good-bye to 3.5% minimum down-payments and hello to putting a minimum 5% onto the transaction, excluding closing costs. This may make it harder for first-time home buyers with limited funds to get into the real estate market. Borrowers with low credit scores will also be affected by the new changes. Those borrowers with FICO scores between 580-620 will be met with increased underwriting criteria that includes a maximum debt-to-income ratio. These and other changes begin January 31, 2013. Read more.
My advice: If you’re thinking of buying a home using an FHA loan get off the fence and into the market…now. I can help. Please give me a call.