There’s a saying that the only things that we’re certain of, are taxes and death. Just as we know that we will die someday, we also know that we have to pay taxes but we’re not always sure about how we will be taxed and the hardest thing to understand is the income tax. If you’re a prospective homeowner in 2013, you need to know certain points about FHA and its different loan programs. Since taxes and home loans are closely entwined, it is worthwhile that you remain aware of the changes that are going to hit the market in the New Year. Read on the concerns of the article to know more on the FHA changes that the homeowners should take into account.
The FHA loans – The most popular among the homebuyers
Yes, the FHA loans are the most popular among the homebuyers as these are home loans that are insured by the Federal Housing Association. The first time homebuyers who are in the market to buy a house for the first time choose FHA loans as the entire process becomes easier and simpler due to the less rigid home buying requirements. However, although the prospective homebuyers are trying their best to take out FHA mortgage loans, there are some changes that they can expect from such loans in 2013. The mortgage insurance and the advance fees will change with effect from spring 2013 and while some fees will go up, some others will plummet.
The changes that are about to come
For the prospective buyers, the upfront mortgage insurance premium will rise to 1.7% of the total loan amount from 9th April, 2013 and the annual insurance rates that are paid monthly will also rise by 0.10 percentage points and those with the jumbo loans will see a rise of 0.35% point jump in the annual insurance premium, which will be effective from June 1st. On April 2012, FHA will also change the collection account guidelines. With the new rules, all collection accounts within the last 2 years should be entirely paid off and all the collection accounts that total up to $1000 must also be paid off. The collection accounts that aren’t paid off, FHA will allow you to set up an alternative repayment schedule through which you can make three on-time monthly payments in order to qualify for an FHA loan.
Therefore, when you’re wondering about the ways in which you can take out a new FHA mortgage loan in 2013, you have to be ready for the above mentioned changes. Unless you qualify for such a loan, you won’t be able to get them and therefore you should be financially ready to take on the new changes and also manage your finances to repay the loan on time.
Author: The article was contributed by Selena Cowell. She is mainly associated with MortgageFit Community since 2005. She is an author and a expert blogger who contributed a lots of articles on real estate, mortgage, finance and economy, refinance, home buyers tips, loan modifications and more on the web. go to www.mortgagefit.com to read more about her writing.
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