While the government is hashing out how to save Wall Street/Main Street, they are quietly pulling back on their own lending.

 

Can’t really blame them for wanting to run scared, but don’t give with one hand and take away with the other (as my Grandmother always said).

 

This week:

·        FHA increased their costs for high Loan amount loans by ¼ point.  This fee is paid for by the borrower. 

·        The VA also discontinued guaranteeing Hybrid ARM loans (ie: 5/1 ARM). 

·        The FHA will only offer the Jumbo Conforming Loan Amount for fixed rate mortgages.

·        A minimum FICO score of 580 is required for all FHA mortgages.

 

Oh here is a good one:  Did you know that your mortgage broker can get paid up to 4% of the loan amount (by the lender) for FHA mortgages? They can also charge points on top of that!

 That is a lot of dough out of your pocket!

Dale Siegel