So what does the imminent demise of Freddie and Fannie mean to you the homebuyer? While the smoke clears,FHA—which guarantees 90% of the home loans in this market—will continue to guarantee mortgages. You will still be able to purchase a home with little down, and have the ability to receive seller-paid contributions to your closings costs, although there are some rumors going around that the allowable amount may be reduced. Down-payment requirements haven't changed. Currently, FHA-approved lenders enjoy the lowest down-payment requirements available at 3.5%. FHA home mortgage limits are fixed for 2011 but that may change in 2012. Counties around the DC Metro Area have an approved mortgage limit of $729,950. Funding limits range from county to county (click here to see your county's FHA loan limit). As of April 2011, the FHA will require an increase in monthly mortgage insurance premiums from .90% to 1.15%. What effect will that have on your mortgage payment?
To calculate your monthly MIP payment, take the loan amount, multiply it by 1.15% and divide the total by 12 months.
Some analysts predict industry-wide increases in mortgage rates and closing costs in the near future, as lenders begin to transfer their additional costs to the homebuyer.
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