For West Knoxville and Farragut home buyers who plan to use an FHA loan to buy a home, new regulations put into place by the FHA could make securing a loan a little more difficult.
Under the new regulations, potential buyers will be required to have higher minimum credit scores, increased down payments, along with increased mortgage insurance premiums for loans over $625,000. These new policies are expected to go in effect by January 31, 2013.
The new FHA policy changes were made to help increase the FHA reserves, which had deficit of $16.3 billion last month. The tightening of regulations will, hopefully, allow the FHA to avoid a taxpayer bailout this year.
Here is a breakdown of the changes that will go into effect for West Knoxville or Farragut home buyers that plan on using an FHA mortgage to finance their home:
Are you considering using an FHA mortgage to buy a West Knoxville or Farragut home? Do you have questions or concerns about the updated changes? If so, please do no hesitate to give Knoxville Home Team a call. Rick can be contacted at 865-696-9002 or send an email to [email protected]. Kati can be contacted at 865-696-1888 or via email at [email protected].