FHA announced that they have increased both the monthly and upfront fee 25 BPS, effective April 18, 2011.
Even though the 3.5% low down payment still exists through FHA, the monthly and upfront fees will cost a homeowner a little more these days.
So what does that mean for a First Time Home buyer in San Diego? For a typical $300,000 priced home, you will still be able to put the required 3.50% down payment, but the monthly fee will increase $48 and the upfront fee will increase $750.
An FHA loan is still highly recommended for a First Time Home buyer in San Diego because of the other benefits that come with the loan program:
- 3.5% low down payment can be a gift
- Debt to income ratios are allowed up to 50%
- The seller can pay for all of the closing costs
- Lower credit scores
- Non-occupant co borrower allowed
- No prepayment penalty
More FHA Guidelines.