New FHA Financing Guidelines

FHA announced new changes to their financing guidelines on January 20th, 2010. By all accounts the new changes are a victory for home buyers.

The following are the changes announced on January 20th:

* The upfront mortgage insurance premium (UFMIP) will increase to 2.25% up from 1.75%. FHA will continue to allow the financing of the UFMIP.

* Borrowers with a credit score below 580 will be required to have at least 10% down payment. The minimum down payment will remain at 3.5% for all other borrowers.

* FHA will seek legislative authority to increase the annual premium (currently capped at .55%). Over time, increasing the annual premium may allow FHA to reduce the up-front premium.

* Seller concessions will be reduced to 3%, down from the current 6%.

In addition, FHA will make the following lender enforcement changes:

* FHA will implement credit watch terminations at lender underwriting.

* Public reporting of lender performance through scorecard system will be implemented.

* FHA will implement, through notice and comment, indemnification against lenders. Indemnification will be expanded beyond fraud and misrepresentation.

* FHA will seek legislative authority to enforce indemnifications against direct endorsed (DE) lenders.

* FHA will seek legislative authority to sanction lenders nationwide based on performance of local branch.

Are you or someone you know in need of a real estate professional? The Grove Team can assist you with all of your home buying and selling needs. The Grove Team can be contacted directly:

Office (817) 337-0000
info@groveteam.com

www.groveteam.com

Updates provided to the Grove Team, Keller Williams Realty by Prospect Mortgage.

Tax Appraisal District Review by State Comptroller Won't Change Much

After speaking with a Tarrant County Appraisal District spokesperson, we've learned that the review of all appraisal districts in Texas by the state comptroller's office in 2010 probably won't make a difference in how local county appraisal districts work. The review is more an evaluation of the appraisal district's written procedures than an analysis of the accuracy of appraisals of real estate.

Since most local counties already have established written procedures, systems probably won't change much. Tarrant County is already evaluating its procedures to make sure that they meet state requirements.

Members of the Grove Team are working to gain additional knowledge of the tax appraisal process in order to be of maximum assistance to our clients to reduce tax bills. More to come.