Buyers and Sellers Should Hurry

As 2010 begins buyers and sellers should understand that, this truly is the time to step up to the plate and purchase or sell before new FHA guidelines kick-in before “early summer.” Additionally buyer tax credits will expire or decrease by April 30, 2010.*

I do not disagree with these changes, however I believe that one should take advantage of any, and all “advantages” that one is entitled to receive. Currently FHA guidelines allow a minimum “down payment” of 3.5%, and that should not change this year if your FICO score is 580 and above, however other fees and lender requirements of the purchasers will change. (Prospective purchasers with less than a 580 FICO score will be required to place a minimum of 10% down payment.)

The upfront payment of mortgage insurance will increase; the monthly mortgage insurance payments will increase; and the seller’s ability to aid the purchaser with closing costs will be reduced from 6% to 3% when these changes are implemented. All of the increases may have an overall good affect within the banking system and long-term prosperity, the abrupt effect of these changes will decrease the number of purchases between 250,000 – 1,000,000 during calendar year 2010.

Now is the time to buy or sell, before May 1, 2010; hesitate…your loss.

Comments or questions please contact Don Khoury at info@realestatephd.com , www.realestatephd.com ,or 540-341-8926.