Are you considering buying a home and asking the seller to help you with your down payment? Act fast, because as of April 1st, the guidelines are getting a lot tougher. On top of that, the FHA will be raising it’s mortgage insurance premiums, making it tougher for folks to qualify.
Why in the world would the FHA been doing this just when we are seeing a turnaround in housing? FHA insurance fund reserves have dwindled down to far below congressionally mandate levels – and their delinquencies have been increasing. The FHA is now under the gun from Congress and the Obama administration to get their act together and find a way to replenish these reserves. The first to be hit? The consumers.
How does this affect you? Let’s say you are buying a home using a FHA loan for $400,000. The seller now can contribute up to $24,000. After April 1st? $12,000. And your upfront mortgage insurance premium goes from 1% to 1.75%. Absolute nuts!
What can you do? Find a home. Lock in your rates now. The Hagley Group is currently helping dozens of buyers get into contract before April 1st. One of our 6 concierge buyer agents can also help you. Give us a call at 925-824-4877. It’s never too late to get a great deal.
The Hagley Group serves San Ramon, Danville, Dublin, Livermore, Pleasanton, Castro Valley, Blackhawk, Ruby Hill, San Leandro, San Lorenzo, Mountain House, Tracy, Hayward, Fremont, San Jose and all cities in Alameda, contra Costa, and Riverside Counties. The Hagley Group is a YELP consumer favorite.