FHA is about to change concession amounts POPULACE! Currently you can ask for up to 6% of the sales price for closing costs and pre paid items from the seller, but FHA is preparing to slash that number to 3%. What this means is that if you don't have much money above the 3.5% down payment required for an FHA loan than you may want to act fast or save up a little more as you will be required to make up the closing cost difference. Closing costs and pre paids will vary but know for sure you will be asked to contribute more towards this cost once the new number takes affect. The new number is expected to go into effect by late summer. The reduction is a safeguard for FHA so that they are not insuring underwater loans. This may or may not put a damper on your plans to purchase a home but if you are ready than take advantage of the higher concession amount while you still can.
Remember: BE IN THE KNOW!
Carl O
http://www.latimes.com/business/la-fi-harney-20100530,0,463085.story
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