FHA financing changes begin taking effect on Monday, April 5. The change is an increase in the mortgage insurance premium a half percentage point to 2.25 percent. This will not impact home purchases significantly as it is a cost buried in the loan with the borrower paying a little each month. For a $100,000 loan over 30 years this increase in the premium adds $1.39 per month to the payment.
Another change coming early in the summer is a reduction from 6 percent to 3 percent, the amount of closing costs a seller can pay on behalf of the buyer. This may have a greater impact on housing sales as borrowers may have to come up with additional cash besides the down payment. You can read more at REALTOR.org and Memphis Daily News.
Resource: REALTOR.org & Memphis Daily News
