FHA Raises Down Payment Requirement For Mortgage Loans
REM #A840
By Ilyce R. Glink
Summary: Since the financial crisis it has become more difficult to get a mortgage loan without a down payment. The Federal Housing Authority, or FHA, raised the minimum down payment required to get a mortgage loan to 3.5 percent of the loan value effective January 1, 2009. In addition to having enough money for a down payment, you also need to have a housing cost-to-income ratio of no more than 31 percent. Housing costs include homeowners insurance expenses, property taxes and the mortgage payment.
Q: Is it true that starting January 1, 2009, it is a requirement to put 3.5 percent down on the purchase price when buying a home?
A: The Federal Housing Authority (FHA) has indeed raised the minimum down payment amount for a loan from 3 percent to 3.5 percent as of January 1. This assumes that your housing cost-to-income ratio is no more than 31 percent.
In other words, you cannot spend more than 31 percent of your gross monthly income on your mortgage, homeowners' insurance premium and real estate tax payments.
For more details, go to
http://www.hud.gov/.
NOTE: Ilyce R. Glink's latest ebooks are "The Clutter Collector: How to Get Rid of Clutter Everywhere in Your Home" and "How to Save $50 a Month," which are available at her new, all-video website,
http://www.expertrealestatetips.net/. If you have questions, you can call her radio show toll-free (800-972-8255) any Sunday, from 11a-1p EST. You can also write to Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact her through her website,
http://www.thinkglink.com/. ©2009 by Ilyce R. Glink. Distributed by Tribune Media Servi
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