New FHA mortgage rules are coming that will completely change the way mortgages are processed. If you own a home in Bergenfield, Dumont, New Milford, the west side of Englewood, most of Teaneck, Bogota, Ridgefield Park, Hackensack, Lodi or a host of other areas in Bergen County and are thinking of selling your home, get on the market now.
Do you want to buy a Bergen County home this year under $500,000? Most likely you are using a FHA mortgage and as a FHA buyer you must be in contract by mid May. Why?
Because whether you’re a homeowner whose buyer is using a FHA loan or you’re a FHA mortgage qualified buyer, your world changes June 1st. It is going to be tougher and more expensive to get FHA funding.
The FHA is losing money due to defaults so they must make changes. On June 1st the minimum down payment rises from 3.5 to 5% and PMI will cost you much more. If you get your mortgage started before then, these new changes will not apply.
Interest rates are already up this year – no more 2.99% 30 year loans. We’re moving toward 4% now as rates are currently at 3.75% for most folks. As long as your mortgage process starts before June, you can close this summer under the current FHA program.
Questions? Call Emi Kalici of Weichert Financial at 201-569-7888 ([email protected]) along with another banker if you wish. Don’t wait till the last minute – waiting till then may make it impossible to get your mortgage processed in time.