On April 5th of this year, there will be some changes made to the FHA up-front mortgage premium payments. To recapitalize the FHA reserves, the up-front premium is being raised to 2.25% from 1.75%.
As a Colorado Springs Realtor who works in the Colorado Springs Real Estate market, I really don’t think it’s going to be as big of a deal as some have projected, especially those who think that buyers will feel a significant pinch from this particular move. I don’t think these changes will preclude buyers from making home purchases.
Let me quickly explain my thoughts for a second. When I say that I don’t think that this increased rate change will be that big of deal, I do so with this in mind.
First, if the FHA doesn’t have this increased amount to migrate into the payers’ monthly payments, then financial issues will work best for the long-term stability for the FHA and on the short-term, the buyers will not feel the squeeze from their monthly payments.
Second, regarding the reducible seller concessions dipping from 6 percent to 3 percent, again it will not be that big of deal on homes valued over $150,000, which is the majority of our Colorado Springs Real Estate clientele.
From my perspective, I don’t think we should think the worst regarding some of the financial changes that are due to come down the pike.
Feel free to contact our Colorado Springs Realtors at Selley Group Real Estate, LLC:
2139 Chuckwagon Rd, Ste 210 – Colorado Springs, Colorado 80919 – 719. 598. 5101
