Do You Want The Good News, Or The Bad News?

Do You Want The Good News, Or The Bad News?

First Time Home-Buyers  Should Not Wait Another Month!

Although the mortgage rates are at the lowest point in history, there are drastic changes in FHA Lending pending approval. If approved as anticipated, even fewer people would qualify for a mortgage.

The Good News: Rates on 30-year home loans fall to 4.99%

In a third straight week for declines, the 30-year mortgage rate again dropped below 5%. Read more.

The Bad News: Announced FHA Policy Changes:

  1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
  2. Update the combination of FICO scores and down payments for new borrowers.
    • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
  3. Reduce allowable seller concessions from 6% to 3%

And, More Bad News: The market is rapidly adjusting, as I am certain that those of you who have been watching and waiting, have seen nice 3-4 bedroom homes in nice school districts (West Miramar, Pembroke Pines, Davie, Cooper City) for less than 300,000. Yes, it was back then- several months ago. I have been monitoring this market segment closely during the months of November, December last year and January this year, for a few desperate clients of mine, who back then decided to wait. Now, their choices are very limited… and it is a bidding war.

If you are one of those buyers, shopping at this market level and you have been pre-approved for FHA financing, the clock is ticking. And, the rewards are there today: lowest rates, tax credit and still all benefits of the FHA!

I look forward to assisting you.



Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM

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