Gateway Blog

The cost to complete an FHA home purchase will be increasing very soon.  FHA will also be limiting the amount of cost the seller can pay for the buyer very soon.  FHA loans are a very popular loan option right now because of the low costs and the fact the seller can pay for most, if not all, of the buyers closing cost. 

Effective for FHA loans for which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This is an increase from 1.75 percent.  This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

Also, if you are aiming to get the $8,000 first time homebuyer tax credit time is running out!!  Call us today!!!

Gateway Mortgage Group

405-751-3800