New FHA Downpayment guidelines released by HUD/FHA real estate loans require more downpayment
By Fred Chamberlin, Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant
(Guild Mortgage Co - Oak Harbor WA)
The U.S. Department of Housing and Urban Development released Mortgagee Letter 2009-23 Sept. 5, 2008, (that means it is the 23rd this year) regarding the revised downpayment requirements of the Housing and Economic Recovery Act of 2008. This change will take place Jan. 1, 2009 and will require a borrower "shall have paid, in cash or its equivalent...an amount equal to not less than 3.5% of the appraised value of the property..." What this means is that were an FHA buyer had to have a minimum of 3% contribution into the purchase of a home, it could be a combination of down payment and closing costs prior to the change. This was actually a fairly complicated computation and the change is called "downpayment simplification." This may be one of the first times something like this is names c...
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