FHA Changes mean buyers may need more cash
On July 15th HUD has given notice that several changes to FHA guidelines are proposed. There is a public comment period open for 30 days from the posted date. One key change proposed is to lower the allowable seller contribution from 6% to 3%. For Many people buying homes in Lancaster County, they have been able to purchase homes using FHA financing with very little out of pocket cash if the seller would cover much of the buyers closing costs, which FHA allowed. Once this change takes effect, it will make it more difficult for some people who have little cash to purchase their home.
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