If you are a first time home buyer and have been holding off on purchasing that first home then you might want to consider the changes coming to FHA loans as another reason to purchase now.
FHA which is the Federal Housing Administration, the government agency who guarantees low down payment mortgages is making changes and they are not in your favor. Most of these changes will be enacted this spring and early this summer. Now remember that April 30th is the deadline to be under contract on a house to receive the $8,000 first time home buyer tax credit but you need to close by June 30th. This where the problem comes in. By waiting till the very end you may fall into the new guidelines. And what are they?
Minimum Credit score increased to 580 from 500
Upfront mortgage insurance increased to 2.25% from 1.75%
Monthly mortgage insurance premium increased (exact amount unknown yet)
Amount of your closing costs a seller is allowed to pay, lowered to 3% down from 6%Do you get the picture? All of this will cost you more money, not just upfront but on a monthly basis. Now this doesn't take into account that on April 1st, the Treasury is going to stop purchasing Mortgage backed securities. Early estimates have interest rates climbing from 5% to 5 3/4% maybe even 6%. This will also cost you more money on a monthly basis or severely lower the amount of home you qualify for. Are you ready to risk your ability to purchase a home?The cost of money is going up very soon, are you going to wait?Call The Russell Home Team today at 913-681-1383 or use our link below to view all homes for sale in Johnson County Kansas, get tax credit information and more.
Mike Russell is a REALTOR with Keller Williams Realty. Mike specializes in Johnson County Kansas Homes and Real Estate for sale. Mike is a tech savvy realtor with over 17 years experience. Did you enjoy Mike's Blog? Feel free to subscribe or join Mike on his Social Network to stay up to date on Overland Park, Olathe, Leawood, Lenexa, Shawnee and all of Johnson Counties real estate news and more...
Mike Russell & Associates can be reached at 913-266-5828 or MRussell@KW.com or www.SearchjocoHomes.com