Wichita Home

All About Wichita and Wichita Real Estate

Buy Now or Prepare To Pay More

Changes Coming To The Real Estate Market

The real estate mortgage market is changing quite a bit soon as the Government scrambles to fix past mistakes.

The tax credit for first time buyers and repeat buyers will be ending at the end of this month, April. To qaulify a buyer must have a binding contract by April 30 and the property has to closed by June 30.

The FHA will be raising mortgage insurance premiums from 1.75 % to 2.25%. This could raise monthly payments $50 to $100.

Credit scores below 580 will require a 10% down payment, still 3.5% for everyone else and the amount sellers are allowed to contribute to closing costs and prepaids will be reduced from 6% to 3%. This could mean more cash required at the closing table.

These new rules will make it harder for working households to secure safe and affordable home financing.  Buyers will be forced to spend more on financing or scale down the size of  home they buy.

There are even mumblings about adding a sales tax to home purchases. Only talk as of now.

It looks like the Government is going to over compensate cleaning up it’s mess. But that’s nothing new.

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March 28, 2010 - Posted by | Uncategorized

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