The F.H.A is Changing it's Down Payment and Creditscore Criteria Did You Miss Out?

The FHA is proposing to update the combination of credit and down payment requirements for new borrowers, reduce seller concessions from 6% to 3% and tighten underwriting standards for manually-underwritten loans.

Online PR News – 19-July-2010 – – Santa Rosa, CA, July 18, 2010 -- We at Essex Mortgage Bank ( ) want to advise you the the Federal Housing Administration (FHA) is considering these policy changes to boost its capital reserves. Under the changes, new borrowers seeking FHA-insured loans will need a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with credit scores between 500 and 580 will be required to provide a 10% down payment, and borrowers with credit scores below 500 will no longer qualify.

"These are the latest in a series of changes to allow the FHA ( ) to manage its risk better while continuing to support the nation's housing recovery," said FHA commissioner David Stevens in a press release. "By protecting FHA's capital reserves, we can continue providing affordable, responsible mortgage products and will remain the nation's largest source of home purchase financing for under served communities."

The Federal Housing Finance Agency seems to draw no distinction between the lien from this program and any other kind of lien that a private party or government can place on a property for missed payments or unpaid bills. As a result, the agency has ordered Fannie Mae and Freddie Mac to require affiliated lenders to lower loan amounts for all borrowers here in California ( ) and in other areas where energy retrofit programs exist.

The county of Sonoma is not a for-profit entity. Its interest is in seeing homes become more energy efficient and self-sufficient and stimulating the economy by creating some jobs. As a result, a distinction and an accommodation needs to be made for these kinds of liens.In the absence of this program we at Essex Mortgage Bank ( ) want to help Sonoma County Homeowners keep up the good work by offering the FHA 203(k) loan for all solar or housing remodels.

The changes also seek to reduce the share of the home sales price that sellers are allowed to contribute at the closing table to offset the buyers' costs. The current share of 6% "exposes the FHA to excess risk by potentially driving up the cost of the home beyond its appraised value," the FHA said in a statement today. The proposed change would reduce seller concessions to 3%, which the FHA ( ) said would bring it into conformity with industry standards.

The proposed FHA policy ( ) updates also require lenders, during the underwriting process, to consider compensating factors that are "the best predictive indicators of loan performance" - credit history, loan-to-value ratio, debt-to-income ratio and cash reserves.

If you have not used this opportunity to purchase your first home you better act fast you will never have such a great combination of factors (low rates,little or no down payments required and a large supply of foreclosed homes on the market.

Our loan representatives are ready to answer you questions and take your loan application today all us toll free at 1-877-870-2676 or visit us online at you have nothing to lose and everything to gain as branch manager Jeffrey Martino Young promises that has office will meet or beat any lenders rates !!!

Press Contact:
Jeffrey Martino Young
Essex Mortgage Bank
1585 Terrace Way, Suite 158
Santa Rosa, CA 95404