Uncategorized March 14, 2013

Changes coming to FHA buyers

Effective April 1 there are some changes coming in the lending world that could impact you if you plan to use an FHA loan to purchase a new home. The cost of mortgage insurance is expected to go up and they will be decreasing the maximum debt ratio. What this means is that if you are planning on using an FHA loan (attractive b/c it only requires 3.5% for a downpayment) to purchase your next home it will be a little bit more expensive and a little more restrictive next month.