Chat about Macomb County MI real estate & Homes for sale search site

In the coming weeks we will probably be seeing much
in the media about HUDs Federal Housing Administrations
(FHA) new guidelines and pricing structure that is
expected to go into effect on July 14th.

I’ve already had calls from prospective buyers in our area
who are worried that this will mean that the FHA mortgage will be more difficult to obtain.  This is not true - the new guidelines simply mean that the upfront mortgage insurance will be based upon risk.

FHA has had a 1.25% upfront funding fee for as long as I can remember.  That 1.25% of the purchase price of the home or condo could
be paid by the buyer at closing, or added on to the mortgage and financed.   I can’t remember the last time a buyer paid the funding fee upfront and didn’t finance it.

The new changes to FHA guidelines are pretty straightforward: The
higher your credit score, the lower the upfront funding fee.  Instead of
a “one size fits all” approach we will now be seeing a risk based approach.

The FHA mortgage is still the best mortgage product in my opinion for
home buyers in Macomb County who have little money to put down, do not have “perfect” credit, and who want lower private mortgage insurance premiums.   It’s a wonderful mortgage program for first time home buyers and repeat buyers also.   Most home sellers are seeing the light about these mortgages and are welcoming FHA (and VA) buyers with open arms.

If you have any questions about the changes you’ll be hearing about and reading about please don’t hesitate to call me at 586-840-1876 or drop me an email.

~Kris~