Real Estate Purchases and Refinance Changes as of June 3, 2013

Looking to purchase or refinance your real estate property? A few FHA changes will be taking affect on June 3rd, which could have a large impact on your real estate financing decisions.

According to the U.S. Department of Housing and Urban Development’s (HUD) Mortgagee Letter 2013-04, those who will purchase or refinance after June 3rd will have to pay mortgage insurance for 11 years or for the life of the loan, unless the purchaser puts down 10%.  The length of the insurance payment differs depending on the type of loan.  If the purchaser puts down the 10%, the annual mortgage premium can be eliminated after 11 years.

ReCasa Financial Group - Real Estate Lending

It is important to get an FHA case number before June 3rd, as to not run into these new regulations and to secure the previous regulation of eliminating the mortgage insurance payments once the home’s equity reaches 22%.

For those looking to purchase or refinance, please take these changes seriously and act soon.  In addition to these new statements, mortgage interest rates are increasing and are expected to reach mid 4% by the end of 2013.

If you are looking to purchase or refinance in OH, PA, or IN, please call ReCasa Financial Group today!

Shane Forrestal: OH
NMLS # 900083   OH License LO 042287.000

Graham Montigny: OH, PA, IN
NMLS# 195412   OH License LO 002049.000   IN LO 195412   PA: 35011

ReCasa Financial Group
130 E. Chestnut Street, Suite 200
Columbus, OH 43215
OH: MB.803923.000   IN: 08-0038 LB   PA: Licensed by the PA Department of Banking