Timothy J. Sierra, Attorney at Law Trusted Florida Bankruptcy Attorney Since 1987
Call Today For A Free Initial Consultation
813-463-2256

Mortgage borrowers take note: FHA's loan policies set to change

If you're considering a loan modification in Florida or a new loan using FHA's services, you may first want to consider new polices and fee hikes that the Federal Housing Administration will be putting into effect over the next few months. FHA loans have been traditionally popular for people with credit problems or lower down payments and have for years been considered ideal for first-time buyers with modest incomes.

Because of the many losses it sustained during the years after the housing market crash, FHA has decided to change some of its policies. Starting on April 1, mortgage insurance premiums are set to increase. Additionally, in June, potential borrowers with credit scores below 620 or debt-to-income ratios over 43 percent will be required to have manual underwriting with their applications. A 5 percent minimum down payment for loans above $625,500 will be required for FHA loans in high-cost areas.

Also, after June, FHA will continue charging borrowers their mortgage insurance premiums for the life of the loan, rather than giving borrowers the option to cancel these charges once the loan balance is reduced to 78 percent of its original amount.

Mortgage lender experts are cautioning potential home buyers that these upcoming FHA changes may make home loans more expensive for those with good credit. While FHA has helped millions of first-time home buyers in Florida for decades -- and may still be a good option for those who can't pay the average 5 to 20 percent down payment required by many commercial lenders -- these upcoming changes may convince some potential customers with higher credit to look elsewhere for a loan.

Source: Tampa Bay Times, "The Nation's Housing: FHA fees pack a bite," Kenneth R. Harney, Feb. 9, 2013

No Comments

Leave a comment
Comment Information
  • "When I first came to the decision to file for bankruptcy, I had no idea where to start. I began researching attorneys on the internet and came across the information for Tim Sierra. Since he specialized in bankruptcy and had a lot of experience......"
  • The process of going through bankruptcy could be very overwhelming but Tim made me feel at ease and I felt that my needs were being taken care of. I truly feel that he had my best interests in mind and the lines of communication were always open....
  • "I had to file a Chapter 7 bankruptcy. I didn't know anyone who could refer someone so I took a chance and just looked on the Internet. I don't remember exactly why I chose Mr. Sierra, but I am glad I did..."
  • He was honest, straightforward, and hard-working. In my case I ended up with some extenuating circumstances and he handled the matter professionally even though I'm sure the work probably exceeded what he originally felt it would be....
  • I don't ever write reviews, and I had no prior relationship with Mr. Sierra. This review is simply being written as a service to others that Mr. Sierra is an excellent attorney and should be considered for your needs if you need one....
  • "I'm very happy to have been referred to Tim for my Chapter 7 filing. He was knowledgeable in his field and very responsive in replying to any questions or concerns I had. Tim was also very accommodating with meeting times..."
  • " I recently was in need of Mr. Sierra's services and I found him to be very understanding and helpful in my particular circumstance. He met with me and explained everything in full detail and also answered every question that I had....."
  • " I recommend Timothy Sierra a loyal and dependable lawyer. When you talk to him you feel that you are with a friend or a member of your family. Timothy is able to lead you in every step of the process. Good job Timothy."
  • " Bankruptcy is a private and personally devastating life event. Timothy Sierra and his assistant, Nancy, made the process as painless as possible. They kept in close contact via phone and email so I always knew what was happening in my case...."
More Testimonials
Email Us Today

Schedule A Free Initial Consultation To talk to an experienced Tampa bankruptcy attorney, call 877-492-7449 or fill out the form. All calls are returned within 24 hours.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

We Have Offices in Tampa, Riverview and Brandon For Your Convenience.

Tampa Office
118 South Rome Avenue
Tampa, FL 33606

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Tampa Law Office Map

Riverview Office
6314 U.S. Highway 301 South
Riverview, FL 33578

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Map & Directions

Brandon Office
305 North Parsons Avenue
Brandon, FL 33510

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Map & Directions