Over the past two years most of the no and low money down mortgage programs have gone away due to Real Estate challenges in other parts of the Country. As a result, more and more home buyers have been using FHA financing. One of the benefits of this program is it allows the sellers to pay up to six percent of the buyers closing costs and it allows the buyer to purchase a home using as little as 3.5 % of their own funds. ( This can even be gift funds )
So what's the big change? Sometime this Summer the guidelines will change and the sellers will only be allowed to contribute a maximum of THREE percent toward the buyers costs. For many buyers this will make it much more difficult to come up with the funds needed to buy their home. For some buyers it will make it impossible! Buyers need to be aware of this as it could come as a surpise if they wait to long to "make the move"