Buyers Should Act Now In Bel Air, Maryland Before FHA Changes Are Upon Us
By Linda Greco Rich, ABR, SRES, Harford County Specialist
(Exit Preferred Realty)
We are all expecting it ...changes on the horizon with FHA are going to make business even more challenging.On several fronts, there are changes that are imminent that will affect how we do business with FHA buyers. First and foremost, we are all awaiting the announcement from FHA regarding its position on Seller Contributions that will be cut from a maximum of 6% to offset the closing cost on a purchase loan. That has been expected to be implemented by summer and be reduced to 3% which will impact each and every deal in a negative way. In our market, it is predictable that the required contribution from a seller to keep a buyer at their minimum 3.5% exposure would necessitate a 3.5%+ concession and with that disparity, typical FHA buyers can now expect to come to the table with more of...