FHA Rules to Change for Home Buyers...Even in Charleston!

As if home buyers haven't faced enough changes and challenges over the last two years, Federal Housing Association lending rules will soon change for borrowers. Effective October 4, 2010, FHA Mortgage Insurance programs will change in a number of ways. Monthly insurance premiums will go up but upfront costs will be reduced to from 2.25% of the loan to 1% of the loan. If you aren't scratching your head over these changes, you are missing a good opportunity to do so! What does that mean for you if you have a ratified contract on a home or considering a purchase? It may mean that if you plan to be in your home for less than three years, you should hold off until after the changes since the increase in the monthly fees will be less out of your pocket than the current upfront costs. If you plan to be in your home for a longer term, you should perhaps pull the trigger and lock your loan prior to the October 4th date which means that your lender must register your loan with the FHA prior to that date. One more wrinkle to consider...After October, FHA will be limiting financing for borrowers with credit scores below 580.Some really fantastic news...Inventories are healthy, rates are near historic lows, and prices are similar to those experience in 2003 so it is a wonderful time to buy. It is also a good time to sell since you will make up whatever you may lose on the sale of your home when you purchase your new one. A great time to buy your first home, to move up, or to downsize. One great example...I listed a home on August 27th in Park West in Mount Pleasant, SC, I had a ratified contract in less than 24 hours, and we will close on September 23rd. This was not a short sale or foreclosure...it was a well-maintained home that was priced to sell. The Charleston, SC area, including Mount Pleasant, Sullivans Island, Isle of Palms, Daniel Island, and Summerville, has some incredible opportunities for investors who are looking for positive cash flow as well as for buyers looking for a special place for them and their family. I represent buyers and sellers who are looking for an agent who will diligently represent their best interests, who understands the Charleston market, and who has handled difficult transactions, including short sales and foreclosures. I would love to have the opportunity to represent you and hope that you will call on me at 843-442-2219...even if you just have a question! You can visit me on my website and search all Charleston area homes at http://www.woodsflowers.com