There has been many changes in the lending industry, below is a brief summary that will come into affect in the near future.

EFFECTIVE OCTOBER 1,2008

• SELLER-FUNDED DOWN PAYMENT ASSISTANCE PROGRAMS (DPAs) ON FHA LOANS ARE ELIMINATED

• MINIMUM CASH INVESTMENT BY BORROWERS ON FHA LOANS INCREASES TO 3.5% FROM 3%

• A MORATORIUM ON FHA RISK-BASED MORTGAGE INSURANCE PREMIUMS GOES INTO EFFECT

• VA LOAN GUARANTY INCREASES

• FHA LOAN LIMIT WILL REMAIN AT $271,050

EFFECTIVE JANUARY 1, 2009

• FNMA/FREDDIE FLOOR WILL REMAIN AT $417,000

• THE MAXIMUM LOAN AMOUNT FOR FNMA/FREDDIE and FHA IN HIGH COST AREAS WILL DECREASE FROM $729,750 TO $625,500, BASED ON 115% OF THE AREA MEDIAN HOME PRICE VS THE CURRENT 125%

FNMA/FREDDIE AND HUD HAVE NOT YET COMMUNICATED THE PROGRAM REQUIREMENTS TO MORTGAGE LENDERS AND INVESTORS.  ONCE ADDITIONAL INFORMATION IS AVAILABLE, Platinum Home Mortgage WILL COMMUNICATE THE PROGRAM DETAILS AND IMPLEMENTATION PLAN BASED ON THE ABOVE CHANGES.  

Earl Schmidt

Platinum Home Mortgage

425-252-5757