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 The Department of Housing and Urban Development has introduced policy changes intended to reduce the risk of loans insured by the Federal Housing Administration and is soliciting public comment through Aug. 15, according to HUD's July15 notice in the Federal Register.
The FHA is proposing policy alternations that would update credit and down payment requirements for new borrowers as well as limit seller concessions and tighten underwriting standards for manually underwritten mortgage loans. Under the FHA policy proposal, borrowers with credit scores of less than 580 will be required to make a minimum 10 percent down payment on a loan, while those with scores of less than 500 will no longer qualify for an FHA-insured mortgage. Borrowers with scores over 580 will continue to qualify for the FHA's signature 3.5 percent down-payment program.
As for seller concessions, the FHA is looking to reduce the maximum percentage of concessions it allows a seller to contribute from 6 percent down to 3 percent - with the idea that this will bring the agency's policy more in line with industry standards, according to HUD's notice in the Federal Register.
In addition, the FHA also wants to ensure it mitigates risk in regard to manually underwritten loans. Under the FHA's proposed policy changes, when using compensating factors in the underwriting process, lenders will be required to consider a borrower's credit history, loan-to-value percentage, debt-to-income ratio and cash reserves as a tool to gauge future loan performance for any such mortgages.
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On July 2, 2010 President Obama signed The Homebuyer Assistance and Improvement Act of 2010 to extend the deadline for taxpayers to close on their home purchase in order to qualify for the First-Time Homebuyer Tax Credit. The deadline to close on a qualifying home purchase is now September 30, 2010. Prior to the passage of this law, taxpayers had to close by June 30, 2010. Keep in mind that the original date to enter into a binding contract was April 30, 2010 and did not change with this extension. Below are five facts from the IRS about the First-Time Homebuyer Credit and how to claim it. |
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Good laundry room habits, including some occasional minor maintenance, can save energy and shave nearly $300 off your annual utility bills. That’s because you can curb the biggest energy culprit: the cost of heating water. Washing machine The bulk of a washing machine’s operating costs—around 90%, says Energy Star—go to replacing the hot water in the home’s hot water tank. Reduce the amount of hot water the appliance uses, and you’ll significantly shrink its associated utility bills. By washing fewer loads and doing those loads in cooler water, you can save around $200 per year. |
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