We've just received word from one of our preferred lenders, Midwest Mortgage Capital, about some changes regarding FHA loans that will be in effect by the end of the week.  The most positive change could potentially benefit a lot of would be home buyers. 

1) FHA standard credit scores for funding a loan have been decreased to 580!!! Previously you had to have a credit score of 620 or higher to qualify for an FHA purchase.

2)The maximum amount of closing cost paid by sellers has been reduced from 6% to 3% on FHA funded purchases.

3) The upfront Mortgage Insurance premium has been raised from 1.75% to 2.25%.

While these changes have caused closing cost on FHA purchases to go up, they've also opened up a whole new Buyer base for anyone with a credit score higher than 580.  Call us today if you fall into this category to take advantage of the tax credit before it expires!

Thanks to Ryan Luechtefield & Midwest Mortgage Capital for sharing this valuable news with us!