We have all heard about the $8000 tax credit which we are weeks away from April 30 to use.  Not only is this an important reason to close before June 30, 2010 but the office of Housing and Urban Development (HUD) is implementing several changes for loans which will cost the buyer thousands of extra dollars this spring for a FHA loan.  After March 31 the Federal Reserve Board’s mortgage backed securities purchase program will expire.  This program has kept interest rates at a historically low figures.  On April 5th, the cost of required mortgage insurance for loans guaranteed by FHA will increase from 1.75% to 2.25%. Also, the amount of money a seller can return to a buyer from their sale proceeds will be reduced from 6% to 3%. So if you are buying a $400,000 home and could get back 6% from the seller as concessions towards closing costs, this could have been $24,000 but now half that at $12,000.

If you need assistance with buying or selling a home call me directly at 305-807-9199.