FHA Wants to lower Allowable Seller Paid Closing Costs from 6% to 3%
HUD wants to lower allowable seller paid closing costs from 6% to 3% on ALL FHA loans. Only a 30-day window to comment so URGENT that you take action and make comments, see links below.
HUD/FHA Proposed to lower seller paid closing costs from 6% to 3%.
I highly encouraged everyone to take action IMMEDIATELY to submit your comments to the FHA regarding the reduction of the seller concessions to a maximum of 3% or $6,000 whichever is greater.
Please read the notice below to see HUD’s points regarding why they wish to reduce the maximum amount of seller concessions. Some good arguments are made by HUD to do so…However, in the grand scheme of things within the housing market today and the view that I see from the ground floor, now is NOT the time to move forward with this proposal.
I see loan files and talk to borrowers on a daily basis that needs every penny of a seller concession. Considering that down payment and cash to close is the largest hurdle to homebuyers today, this action will have a negative impact on the pool of potential homebuyers….particularly in high closing cost states.
Please forward this to your realtors, builders, title companies, your existing borrowers, and anyone else related to the housing industry and tell them to follow our Call To Action
If you would like to apply for an FHA Loan for the purchase or refinance of a home, please call 302-703-0727 or you can APPLY ONLINE.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713