Monday, October 4, 2010

FHA Mortgage Insurance Increase In Effect October 4

The FHA, which now owns or backs the majority of new mortgages in the US, is suffering from low capital reserves (below the required 2%).  A series of changes were mandated last January, and the mortgage insurance fees increase today.   FHA loans are popular because they require a low downpayment (as little as 3.5%), offer seller concessions (which are changing from 6% to 3%) and credit score requirements can be less-than-perfect. 
Read here. 
See more info and links, plus mortgage math, at RealCentralVA.

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