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Housing Rescue Bill Passed |
The Federal Housing rescue Bill was passed.
This Bill makes several changes to FHA lending guidelines. It will increase the amount of down payment money FHA borrowers must have. Starting Oct. 1, the minimum will increase to 3.5 percent from 3 percent. Buyers will no longer be able to get some or all of their down payment from sellers, which includes nonprofit groups whose assistance to buyers is funded by sellers.
FHA also says it will raise its fees come Oct. 1. Most borrowers will pay upfront mortgage insurance premiums of 1.75 percent of their loan amount rather than 1.5 percent and annual premiums of 0.55 percent rather than 0.5 percent. For a $300,000 loan, that means $750 extra upfront and $150 more a year. |
