Noblesville Real Estate News
In an effort to keep you up to date on what is happening in the entire real estate related world I am opening up my blog to other writers from different aspects of the real estate industry. The format of the blog will remain the same; however you will start to see posts from several different people. This is also an invitation to others in the real estate world that have something to contribute here. If you are great at what you do, stay on top of current events, and are a halfway decent writer contact me about becoming a contributor to this blog.
I am extremely excited to introduce to you our first contributor, Eric McMillan from Fairway Independent Mortgage. Eric is a great friend of mine and will be keeping us up to date on the changes in the mortgage world as well what is happening with interest rates. The mortgage industry is changing at torrid pace these days and keeping up to date on these changes can be an extremely daunting task. Eric’s contributions will keep us up to speed on the mortgage industry and will be an invaluable asset to this blog.
Shortly, I will have the blog changed so these posts will come directly from Eric and others, but until then I will post them for him. So, without further ado Eric’s first blog post covering the recent changes related to FHA and down payment assistance:
As I’m sure most of you have heard or read, the Federal Housing Administration (FHA) has made some sweeping changes over the last couple months that will have a direct effect on an individual’s ability to purchase a home financed through FHA. The biggest change revolves around down payment. First, seller-funded down payment assistance (DPA) is no longer permitted beginning October 1st, 2008. In the past, the seller of a property (or a Builder on new construction) could provide the 3% down payment on behalf of the buyer. That will no longer be allowed and the buyer will be responsible for their own down payment. These funds can come from different avenues, such as a borrower’s own checking/savings account, a 401K or IRA liquidation, a gift from a family member or close friend, or sale of personal property (vehicle, jewelry, etc.) just to name a few.
There is a push from different members of Congress to bring back DPA in some form or fashion, but we’ll need to take a wait and see approach on that for now. The second change is the amount of down payment required on FHA loans. After October 1st, any contract written with FHA financing will require a 3.5% down payment, up from 3.0%. On a $150,000 purchase price, that’s an extra $750 one would need for down payment.
We will continue to explain other changes in future mortgage blogs. If there are any topics you would like to have discussed and explained, please let us know. We want you, our clients, to be “in the know” in not only the state of Indianapolis Real Estate, but also the ever-changing mortgage industry and the impact it could have on you as you look for your new home.
If you have any mortgage related questions, want to know what interest rates are, or need to get pre-qualified feel free to call Eric anytime at 317-205-9912 or 317-657-8242. I can attest both personally and professionally that Eric is extremely good at what he does, always puts his customers first, and always goes the extra mile to ensure his customers get the best rates AND the best service.
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