FHA 2010 Changes

With over 40% of all mortgages guaranteed by Federal Housing Administration, and in light of the housing trouble FHA commissioner David Stevens announced a set of policy changes to managing risk and strengthen it’s capital reserves. These changes include the following:

1. Increase MIP to 2.25%. Mortgage Insurance is paid by borrowers when the down payment is lower than 20%. It protects the lenders in the event of borrower default and makes lending possible for some buyers. This premium can be rolled into the loan.
2. Update the combination of FICO scores and down payments for New borrowers. The minimum score required will be 580 to qualify for FHA’s 3.5% down payment program. If FICO is less than 580 then 10% will be required for down payment.
3. Reduce Seller’s contribution from 6% to 3%. This change is expected to take effect by early summer 2010.

These changes are expected to slow the economy down as well as the housing market. Now is the time to lock in your home purchase before these changes take effect. There are never been a better time to buy. You currently have low interest rates, tax incentive of $6500-$8000, and Seller’s are motivated to sell and are presently allowed to contribute up to 6% toward closing cost. Although time is running out. You must have an executed contract on a home by April 30th and close by June 30th. The buying process is long and arduous but a competent and experienced Buyer’s agent will help you successfully navigate the most expensive and complex transaction you’ll ever make. If you are in the El Paso, Horizon city, Santa Teresa area call (915)873-8646 or visit Russell-Realtor.com.

Homes for sale under $100K in El Paso, tx

El Paso east side home in the Tierras, El Paso Texas priced below market. This very cozy and clean single story home is only 5 years old. Near schools and shopping. Close to new hospital and Joe Battle. Bedrooms good size, 2 full bathrooms, double garage, dog run. tile throughout main areas, professionally cleaned.

Brokered And Advertised By: RE/MAX Associates
Listing Agent: Yvonne Russell

November Real Estate Outlook

What are home sales doing now? The impact of the Tax credit is supporting home sales for another quarter. Home sales jumped up by 11% over last quarter. Some of this is also driven by sustained low mortgage rates. What does this mean for 2010? Have we seen the bottom? I don’t think we have. In my local market consumer expectations of lower prices next year are driving demand for homes down at this time. If you have a home that you have been trying to sell and it’s price right (holding everything else constant) but hasn’t sold after 6 months this may be why. Until consumer expectations about lower prices changes (which probably won’t happen until another 12-18 months) I’d rent it out. If you must sell then visit me atEl Paso Homes for Sale. We specialize in handling distress properties.



The opinions expressed here are my personal expert opinions as a realtor and are to be used for general information purposes only.