FHA changes go into effect on October 1.
First major change is that the minimum down-payment goes from 3% to 3.5%
Second major change is that the down-payment can no longer be gifted - Mom and Dad can't just give them that money, there has to be a documented loan. As far as I've been able to determine from my mortgage guy, closing costs can still be gifted. Seems to me there's some wiggle room there...
Third major change is that the maximum amount of a loan that qualifies for the best interest rate is increasing to somewhere north of $600K (I think it's around $625K, but couldn't swear to it).
According to my mortgage guy, all of this is for FHA loans APPROVED on or after October 1 - if the loan is approved before that date, it can still close later than that under the old rules.
|
