I heard today from a mortgage banker associate who let me know that restrictions are continuing in the mortgage industry and that private mortgage insurance companies are continuing to increase their limitations.

She also noted that effective no later than April 1st, all Flex 100% conventional financing will be gone.

It will soon become more important than ever for you to have a lender that is able to do FHA financing. This particular lender offers this type of financing, including sources that honor the Down Payment Assistance Program (DAP) on FHA loans. FHA is expected to put into effect their increased loan limits of about $250,000 (or higher) by this summer.

You may be one of the borrowers that needs an FHA loan because of the lower 3% down payment requirement, the ease of underwriting, and the lower interest rates. And don’t forget that while some 100% loan programs have gone away, DAP is still available to help borrowers who don’t have the 3% down payment.

As always, you can Get in Touch if you are in the market to buy a home. I’ll do my best to help you.