Change coming for FHA loans was the topic of discussion at the Eufaula Lakeshore Realty “House Talk” program Wednesday, December 10th. Vickey Steele, Mortgage Loan Officer at Citizens Security Bank, Muskogee shared with us the up coming changes for FHA loans starting January 1st. The biggest difference is that buyers will need a true 3.5% downpayment versus the old 3%. The new 3.5% downpayment will be a true 3.5% downpayment and part of the closing costs cannot be counted. Translating this into dollars means that buyers on a $100,000 home will need about $7,500 to bring to the closing table. The only other option will be for the buyer to receive a gift from a family member, participate in a down payment assistance program or participate in the Creek Nation or Cherokee Nation down-payment assistance program.
Credit scores required are changing as well. The lowest credit score being considered is now 560 and if the loan is going through the automated underwriting it needs to be 620. (Our next House Talk program will be on “How to Improve Your Credit Score.” It will be Wednesday, January 14th at 5:30 p.m. to 6:30 p.m. at the Eufaula Lakeshore Realty office located 4 miles east of Eufaula, Oklahoma on Highway 9.
For people wanting to buy a second home, be advised that you can obtain an FHA loan provided that you put 5% down and your primary home is not on an FHA loan.
If you have any questions about FHA loans, credit scores and purchasing a home in the Lake Eufaula area, give Eufaula Lakeshore Realty a call at 918-452-3184. See you at the next “House Talk!”
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