FHA loans are very popular right now so it is important that we keep an eye on what they are up to. Here is an update on some of the changes we can expect from the FHA this year.
The FHA is going to increase the up-front mortgage insurance premium from 1.75% to 2.25%. This will apply to all purchases and refinances, including streamlines. The annual premiums will not change at this time.
The 90 day rule preventing property flipping will be waived for sales meeting certain conditions in February. It will be limited to sales meeting certain conditions. The transactions must take place between a buyer and seller who have no prior relationship. If the sales price exceeds the seller's acquisition cost by 20% the waiver will only apply if the increase in value is justified (i.e. a second appraisal is obtained, documented renovation of the property, etc.). A property inspection must be obtained and given to the purchaser in these cases.
The FHA will also be reducing the amount of allowable seller concessions from 6% to 3% sometime this summer.
If you are planning to purchase a home with an FHA loan in the future, please feel free to contact me to discuss how these changes might have an impact on you.
Best Regards,
David J Edwards
Real Estate Agent & REALTOR
Edwards Real Estate Group
Keller Williams Realty Southeast Sound
Phone: 425-636-0296
Fax: 425-902-1899
E-Mail: David@EdwardsRealEstateGroup.com
Website: http://www.EdwardsRealEstateGroup.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
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The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.
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