The Wardlaw Team Southern Indiana Real Estate Blog  

Changes in FHA financing

Posted By Beth Wardlaw on Monday, February 15, 2010 9:25:00 PM  |  Comment on This Post


Changes in FHA financing were announced on January 20th
Since the number of borrowers using FHA financing has drastically increased in the last year changes are being made to help protect the agency and make sure funds are still available without getting assistance from the federal government.

     Upfront Premium increased
           The Mortgage Insurance Premium (MIP) will be increased from 1.75% to 2.5%

     Decrease in Seller Assistance
           Sellers can only pay a maximum of 3% towards buyer closing costs, down from 6%

     Increased downpayment for under 580 credit score
           Most lenders will not lend for borrowers with under 620 credit score, but FHA will lend to those with under 580 providing the           borrowers put a minimum of 10% down

     The 90 day "flipping" rule
            Homes will not have to be held for 90 days before they can be sold

FHA is an important component in the market.  Over 30% of all loans between September 2008 and September 2009 were FHA.  FHA works for first time homebuyers, buyers with not a lot of down payment, and buyers with less than perfect credit.

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The importance of home staging

Posted By Beth Wardlaw on Tuesday, February 02, 2010 12:46:00 AM  |  Comment on This Post
Markets may change, but the key elements for getting homes sold remains the same: location, price, & condition.   Homes will sell in any condition, but not necessarily for the price that the seller desires. Top dollar requires top condition.
 
Given the same price for two identical homes, the home that has been staged will sell quicker and for closer to full price. 
 
As listing specialists a part of our service is to help our clients in staging their homes.   We help sellers create something special that buyers want.   With a little extra time & effort upfront, our clients are reaping the rewards when their home sells more quickly and they get to move on.
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