Haverford Homes

 FHA seller contribution guidelines and is currently open to comment until August 16th. Of the three changes being proposed, the first is a BIG ONE impacting all of us!! FHA proposes to lower the allowable seller contribution to 3% max from the current 6% allowed. The effect this has: currently, on a $200,000 purchase, at 3.5% down with 6% seller help, our client would need approx $7,000 cash at closing to purchase the property. With the new guidelines, that same purchase the client would need approx. $13,000 cash to close. This is HUGE because after credit profile the number one hurdle (after meeting the required credit profile) for most first time buyers is having enough cash to close. FHA posts all major program changes on the Federal Register for comment. 30-60 days after that they draft a Mortgage E Letter that confirms what changes will take place and when they will go into effect. I predict that the proposed changes will become the new guidelines somewhere between mid October and the end of November. What can you do about it? 1. Take the time to at least have your voice heard by commenting before the close of the period on Aug 16th 2010. 2. Call your purchase clients that plan to use seller help to purchase a home and tell them NOW is the time to buy! Currently rates are at historic lows. And, FHA still allows for 6% seller concessions to help with closing. It’s fair to say that it will NEVER be this advantageous to purchasers again. As always, please call if you have questions. Making Life Easier for My Valued Partners Thanks, Tom Shea Senior Loan Officer 1st Mariner Bank Office: (877) 552-9126 Fax: (410) 552-5866 Cell: (443) 928-8174 tshea@1stmarinerbank.com