FHA and Tighter Lending Standards Could Negatively Impact The Storm Lake Iowa Real Estate Market

The FHA is looking into changing some of its lending standards for FHA backed loans in an effort to reduce the number of defaults and limit the risk to the FHA portfolia.  Some of these changes will include the amount of down payment required (currently set at 3.5%) and credit score a buyer will need, what percent of the closing costs the Sellers is allowed to pay and an increase in the annual mortgage insurance premium.  This is bad news for a lot of first time homebuyers. The FHA has become an important option for home buyers, insuring almost 30% of home purchases—more than 75% of which are to first-time home buyers—20% of mortgage refinancings. Just three years ago, the FHA’s share of the mortgage market was 3%. Read the full story by clicking on the link above.

National Association of Realtors Site - Tax Credit Chart

Interested in the NAR's take on the First-Time Home buyers Tax Credit, click the title to go to the chart that includes current changes. Many home buyers will qualify, if you purchased a home after April 9, 2008 check out the terms to see if you qualify for the credit.