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Financing Program Changes - October 1st (What Buyers need to know)
By michelle | August 31, 2008
October 1st is an important date to be aware of, especially if you are a buyer.
- FHA Risk Based Pricing System: Most borrowers will ay 1.75% of the loan amount, up from 1.5% because the FHA is adopting a “risk-based” pricing system based upon borrowers’ credit scores and the amount of their down payment or equity. For example, on a $300,000 loan, the new upfront premium works out to $5,250, up from $4,500. The annual premiums paid by borrowers will remain at .5% to .55% of the loan balance.
- FHA Minimum Downpayment: Will increase from 3% to 3.5%.
- Nehemia Program: Effective October 1, this downpayment assistance program will no longer be available to first time home buyers.
Make sure you pay attention to these dates as you look to buy a home - because it can have a significant impact on your home buying ability.
Topics: Financial News |
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