FHA announces big upcoming changes!
Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for under served communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP) from 1.75% to 2.25%; increase the down payment requirement for borrowers under 580 FICO to 10% from 3.5%; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.
Are Mortgage Rates on the rise?
Unless you’ve been living in a cave you should know by now that mortgage rates have been hanging out a historically low levels. The big question: Are mortgage rates on the rise? Unfortunately for everyone, we think the answer is yes.
Let’s talk about why the interest rates are currently low before we move into the future. The housing market has been in a major slump and the government has taken great action to increase home sales and help stimulate the economy. Mortgage rates have always been indirectly connected to the bond market and a blend of a few other key investments. The government has been pouring millions of dollars into the bond market to keep mortgage rates from rising but this can’t go on forever. The homebuyer tax credit will more than likely end in 2010 and the endless pursuit to keep rates low will soon follow. Once the government infusion of money comes to an end, the bond markets will start to tank and mortgage rates will start heading in the other direction.
We’ve Moved!!!!!
We’ve Moved!!! Sure, we didn’t go too far away from our previous office but it still required a ton of packing and a lot of heavy lifting! We completely remodeled the office to create an environment our clients will love. Seriously, we have a coffee bar, leather furniture and a plasma TV. Our clients really don’t mind hanging out in the lounge! Hope you enjoy the photos and by all means, if you’re in the neighborhood stop in and say hi!
New Address: 1622 E Hoffer Street – Kokomo, IN 46902
Former Idol looking for fame in Florida
Brandi Davis is probably best known in the community as the 2007 winner of the now-defunct “Kokomo Idol” competition. But a little local recognition two years past simply isn’t enough for this little lady with a big voice.
She entered a nationwide talent competition through a regional audition in May and advanced to the finals which are set for Dec. 3-6 in Orlando, Fla. But she needs a little help to get there.
Home Buyer Tax Credit Extended & Improved
It’s official. The 1st Time Home Buyer Tax Credit has been extended and now includes repeat buyers. Check out our short video to learn about the “nuts & bolts” of the new program. You can also visit the official website at www.federalhousingtaxcredit.com for the complete details.
