Orlando Real Estate News

Federal Housing Administration (FHA) Commissioner David Stevens announced   policy changes to bolster the FHA's capital reserves, while allowing the agency to continue to fulfill its purpose of providing access to home ownership for under-served communities.

Read Also:How Does The FHA Loan Program Work In Greater Orlando, Florida?

The reported FHA Policy changes include:

Mortgage Insurance Premium... which you may see as MIP is going from 1.75% to 2.25%.  Target Date:  Spring of 2010.

Seller Concessions... FHA has allowed up to 6%. This will be reduced to 3%.  Target Date:  Summer of 2010.

Credit scores... Used to be the minimum credit score was 620... the change will be 580. If the score is above 580 the applicant may qualify for the 3.5% down payment. If the applicant's credit score is below 580 they will be required to put at least 10% down. Target Date:  Summer of 2010.

While these changes present challenges to the prospective Orland home owner, in the long-run they may benefit both the program and the home buyer.  The  Orlando home buyer will go into his commitment financially stronger, and their success will ensure the program can be offered to even more prospective FHA borrowers.

Read Also:  Down Payment Assistance Programs

For information on great real estate buys in Orlando and nearby suburbs,
contact the Orlando Property Group, your short sale and luxury home specialists.

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