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Old 08-27-2008, 07:42 AM
 
Location: South Fla
1,044 posts, read 1,722,379 times
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I have learned that the new rules are going to require 3.5% instead of the current 3% and that DPA is no longer allowed, which I understand and I guess it makes sense. My question is regarding seller contribution for closing costs. Will the new rules allow for the seller to pay the closing costs or is that considered down payment assistance? Our plans are to begin the buying process within the next couple of months through FHA, but we are trying to get the most for our money and paying closing costs is something that we are really hoping to avoid.
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Old 08-27-2008, 08:24 AM
 
Location: Charlotte, North Carolina
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Also, the FHA funding fee has changed, and also the monthly MI fee
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Old 08-27-2008, 08:53 AM
 
Location: South Fla
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Quote:
Originally Posted by renriq02 View Post
Also, the FHA funding fee has changed, and also the monthly MI fee
I didn't know that. I know that the MI used to be .5%, do you know what the new fee is? I'm not aware of the funding fee, is that a one time fee or monthly payment, do you know what the new rate will be?

Do you know anything about the closing costs? I've been trying to find one place that gives all of the information on the new rules, but I'm not having much luck.

Sorry for all of the questions, just trying to get a handle on the changes before we start going through the loan process.
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Old 08-27-2008, 08:57 AM
 
Location: Charlotte, North Carolina
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Funding fee from 1.25% of the loan amount to 2.25% for higher risk borrowers. Monthly MI will be range from 0.50%-0.55%. First time home buyers with HUD approved counseling will only have to pay 2.00% for the funding fee
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Old 08-27-2008, 09:59 AM
 
Location: South Fla
1,044 posts, read 1,722,379 times
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Quote:
Originally Posted by renriq02 View Post
Funding fee from 1.25% of the loan amount to 2.25% for higher risk borrowers. Monthly MI will be range from 0.50%-0.55%. First time home buyers with HUD approved counseling will only have to pay 2.00% for the funding fee
Thank you. Are you familiar with what the new rules will mean to the closing cost assistance paid by the seller?
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Old 08-27-2008, 10:34 AM
 
Location: Charlotte, North Carolina
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Closing costs are still the same. Up to 6% allowed.

Down payment assistance has changed. It will end on September 30th.


Quote:
Originally Posted by LLLL98 View Post
Thank you. Are you familiar with what the new rules will mean to the closing cost assistance paid by the seller?
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Old 08-27-2008, 02:10 PM
 
Location: Casa Grande, AZ (May 08)
1,490 posts, read 3,341,025 times
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Hey Ren,

I am NOT an expert...but I thought I read that one of the compromises for not allowing the Seller Funded DPAs was that they were NOT going to implement the risk based premiums on FHA loans?

Is what Im reading incorrect?

The Down Payment increase to 3.5 remains as far as I read....
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Old 08-27-2008, 02:15 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,094,482 times
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I haven't read anything like that.

They're started the new premiums because they need to fund the FHA Secure mortgages

Quote:
Originally Posted by sh9730 View Post
Hey Ren,

I am NOT an expert...but I thought I read that one of the compromises for not allowing the Seller Funded DPAs was that they were NOT going to implement the risk based premiums on FHA loans?

Is what Im reading incorrect?

The Down Payment increase to 3.5 remains as far as I read....
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Old 08-27-2008, 03:34 PM
 
Location: Casa Grande, AZ (May 08)
1,490 posts, read 3,341,025 times
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This isnt where I read it originally, but:

Realty Times - Washington Report: New Housing Bill

They took it out (at least for now).
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Old 08-27-2008, 08:15 PM
 
Location: Cary, NC
1,036 posts, read 3,627,489 times
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Quote:
Originally Posted by renriq02 View Post
I haven't read anything like that.

They're started the new premiums because they need to fund the FHA Secure mortgages

Wow... renriq can be wrong sometimes

FHA is going back to the old, 1 size fits all MI premium on 10/1. So after then it will be 1.5% upfront (can be financed into the loan) and .5% annualy paid in monthly installments.

The started the new premiums in July and it was short lived, but the moratorium on risk-based pricing is only supposed to last 12 months. So then we go back to the old (new) pricing. Confusing yet??
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