Mortgage Blog

Pennsylvania FHA Mortgage Information Update

February 24th, 2013 9:12 PM by Michael and Jill Kohler

There are some proposals being considered by the government for making qualifying for FHA loans tougher and costlier. Here are some of the considerations. Downpayments being raised from 3.5% to 5%. For borrowers that have gone thru the foreclosure process in the past 7 years, would be to increase the minimum downpayment to 20%. Also imposing a maximum debt-to-incomes ration of 43% for borrowers with less than a 620 credit score. There have also been talks of disqualifying borrowers with credit scores of less than 620. Although most lenders have their own minimum score of 640 as their own requirement. These changes combined with an increase in mortgage insurance premiums and prolong the MI payment for the life of the loan will make FHA loans very expensive for the borrower. If an FHA loan is something that you were thinking was one of your options, it would be wise to get one as soon as you can.

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Posted in:General
Posted by Michael and Jill Kohler on February 24th, 2013 9:12 PM

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