If you have been around for awhile in the “game” of real estate…you know the rules of lending have changed time and time again. And now…AGAIN.
The most recent changes apply to people seeking a FHA loan. Mortgage insurance premium (MIP) is going up 4/1/2012 – The upfront financed premium is going from 1.00% to 1.75% and the annual (collected monthly) is going up from 1.15% to 1.25%. The change takes effect on case numbers assigned on or after April 1, 2012 for mortgages under the amount of $625,500.
So…lets take a sales price of $250,000. With 3.5% down payment (minimum required) the loan amount would be $241,250. If you bought a home TODAY with this example your monthly MIP (mortgage insurance premium) would be $180.94. AFTER April 1, 2012 that amount would increase to $231.20. A monthly payment difference of $50.26. This will make a difference in the average buyer’s ability to qualify for the home they might want. They may have to shop in a lower price range.
But wait…there is another issue! Any borrower with over $1000 in collections will have to go under a repayment program for ALL collections and be under the repayment program for at least 3 months. Or, of course, pay them all off.
These are just a couple of changes that borrowers need to be aware of. There are SO MANY lending guidelines the lenders are working with now…it reads like a mystery novel! And every situation is very different. Buyers need a QUALIFIED PROFESSIONAL to guide them through the maze and help achieve the dream of home ownership.
Please…do not try to get a loan with someone who is a “part-time” lender. You need a dedicated professional who knows the business to help you. I have a few GREAT lenders I have worked with for years that I would be happy to refer to you. Having a good lender FOR SURE makes or breaks the deal.
As always… if you are looking for a GREAT agent to help with your real estate needs please e-mail me at Adele@GreaterPhoenixHomes.com or give me a call (or text) at 602-504-3898 or 888-897-7821 x 114. Plus, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL! Go to Metro Phoenix Homes For Sale and check it out! YOU can create and save as many searches as you would like…and it is THE SAME SEARCH I DO AS AN AGENT! You will LOVE it!
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