FHA CHANGES EFFECT HOME BUYERS, BUYING IN LAS VEGAS, BUYING IN NEVADA, BUYING IN HENDERSON, BUYING IN NORTH LAS VEGAS

HOW HUD CHANGES EFFECT HOME BUYER’S! 
 
IS NOW THE TIME TO BUY?

In this market the buyer’s need an advocate in their corner, The Batchelor Group is your advocate to help guide you in this market!

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FHA Announces Policy Changes to Address Risk and Strengthen Finances
 

Announced FHA Policy Changes:

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
   • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
   • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
   • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
   • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
     
     

 

Update the combination of FICO scores and down payments for new borrowers.

• New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
• This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
• This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

     3.  Reduce allowable seller concessions from 6% to 3% 

• The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
• This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

4. Increase enforcement on FHA lenders 

• Publicly report lender performance rankings to complement currently available Neighborhood Watch data – Will be available on the HUD website on February 1.

   
There are many changes upon us as a buyer you need help figuring out what this all means. Contact the Batchelor Group today for a personalized buyer’s consultation.
call directly at 702-595-8036 or 702-577-6222

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