New FHA Down Payment Rules in effect January 1, 2009

Rates this week
FHA Program Rate APR
30 Year Fixed 5.500% 5.992%
15 Year Fixed 5.000% 5.637%
5/1 ARM 5.000% 4.591%
3/1 ARM 4.750% 4.213%

The down payment requirement on FHA loans will go up to 3.5% (from 3%).

The effective date for reforms is January 1, 2009, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

This is a huge difference – and if you are working with a loan officer who is not familiar with FHA – you, the buyer, could end up at the closing table needing more money. Be careful!

You may still have time to qualify for a 3.0% downpayment with FHA if escrow is opened and an FHA Case # is assgined before 12/31/08


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