The FHA is doing its part to insure that it will be able to keep financing new homes

The past few years have not been easy in the housing sector, however the Federal Housing Authority (FHA) is working hard to assure its continued stability in the market. 

Created to insure that affordable home financing was available to citizens, and catering mostly first time home buyers, the FHA is an integral part of the real estate business. Thus, keeping this association healthy in communities around the country, such as Phoenix AZ, is important.

The changes that the FHA is making to insure its survival are as follows:

• Raising mortgage insurance premiums from 1.75% to 2.25% of the loan amount.
• New borrowers will have to have a FICO score of 580 or more to qualify for a 3.5% down payment, and those with a score of less that 580 will have to put a 10% down payment toward their new home.
• Seller concessions are being reduced to 3% from 6% to limit any inflation that can occur on the price of a house.
• FHA lenders are going to be carefully scrutinized to make sure that they are adhering to FHA rules and regulations.

The FHA has helped to put many people into new homes since its inception in 1934.  The above changes reflect the FHA’s desire to continue helping new home buyers in communities across the nation for many more for years to come.

For more information on the FHA changes click here, or contact the AZ real estate agent, Tony Marriott, with any questions about Arizona property. 

Tony Marriott can be reached at 602-445-6299 or by email, and would be happy to show you any Arizona short sale homes or Phoenix luxury homes for sale.

However Arizona foreclosures will continue to rise with unemployment, keeping real estate prices from rising in harder hit areas, and home values as a whole are expected to remain flat for some time.

Interest rates are not expected to continue dropping and will most likely head in the opposite direction, expected to hold steady around 5.2%. According to the Wall Street Journal, Federal Reserve chairman Ben Bernanke himself recently locked in a refinance on his residence, a clear indication that rates just might be as good as they’re going to get.

For now, the data shows that AZ real estate sales are on the rise and will continue to improve as long as the mortgage rates stay low and the tax credit remains in place. What happens during the latter half of 2010 is up in the air, but for now the good news is far better than the news of a year ago.

Tony Marriott and the Marriott Arizona Real Estate Team are awaiting your call to look at Arizona homes for sale or Arizona short sales. You can reach Tony Marriott or other members of his team at 623-910-8988 or email him at Tony@HavenExpress.com.