In the next few days, look for FHA to implement further changes to strengthen its financial situation. An audit in late 2009 showed that the capital ratio of its Mutual Mortgage Insurance Fund (MMIF) had fallen below its statutorily mandated threshold. Over the past few months, FHA has raised premiums on its FHA insurance, prohibited seller-financed down payment assistance, stepped up enforcement of its regulations, tightened appraisal rules, banned several lenders from writing FHA guaranteed loans and brought suit against others.
The anticipated FHA Policy Changes include:
- Lowering the upfront mortgage insurance premium and simultaneously increase the annual premium
- Reduce allowable seller concessions from 6% to 3%
The FHA program remains as one of the few ways people can buy a home. Borrowers can more easily qualify for FHA loans because they only need 3.5% down and can have lower credit scores. As a result, demand for FHA loans has exploded. FHA has guaranteed more than $360 billion in single-family mortgages in fiscal 2009, which ended Sept. 30, more than four times the volume in 2007. The agency insured about 30% of home purchases and 20% of refinanced mortgages in 2009. Nearly 50% of first-time homebuyers go through the agency.
St. Louis Mortgage Interest Rates – August 11, 2010 *
- 30-year fixed-rate 4.25% no points
- 15-year fixed-rate 3.75% no points
- 5/1 adjustable rate 3.25% no points
- FHA/VA 30-year fixed rate 4.375% no points
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed-rate 4.625%
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
Leave a Reply
You must be logged in to post a comment.