Castro Valley Short Sale Update | FHA Financing Changes For 2013

Sumo

Castro Valley Short Sale Update, FHA Financing Changes For 2013 and how that can affect your short sale

Your Castro Valley short sale realtors have some new information regarding FHA financing. This is good to know if you are thinking of selling your home as a short sale. If you’re looking to purchase a home, whether you’re looking to purchase a short sale in Castro Valley or in San Leandro, or in Hayward, there’s some news that came out, where the FHA , the Federal Housing Administration, is going through and potentially changing some of the requirements.

The FHA program is a government subsidized program that allows people, if they’re looking to buy a short sale in Hayward, San Leandro, or Castro Valley, they can put down 3.5%, minimum down payment, and be able to purchase a property. Some of the guidelines that they’re looking to change are the old guidelines, is that you had to have a minimum FICO score, minimum credit score of 580. They’re proposing that that now goes up to 620, so that’s going to take a lot of people out of the mix, if they change that credit score by 40 points, right there.

The loan amounts in our area, in Alameda and Contra Costa County, are currently $729,750. So, if you’re looking to purchase a property up to $729,000, that’s the current loan limit for FHA financing. They’re looking to reduce that down to $625,000. So, we’re talking about a reduction of over $100,000, pretty significant for the East Bay, especially for areas like Castro Valley, Hayward, and San Leandro. This will impact what Castro Valley short sale home buyers can qualify for.

Then, a minimum 20% down payment, and that’s really the biggest change that potentially is coming out, right now, 3.5% down payment. But, for some particular borrowers, up to 20% down payment, which is right now what the conventional financing guidelines are. So we’re seeing the guidelines tighten up a little bit for people who are looking to buy a short sale in any city in the East Bay.

Another thing is, right now, you can get an FHA loan within three years of being foreclosed on a home or doing a short sale. Chances are, that’s going to be pushed out as well up to 8 to 10 years. So if you have any questions on how this might impact you, or your financing; if you’re looking to purchase a Castro Valley short sale East Bay. We’d be happy to help.

You can contact us here. Again, we specialize in listing short sales, and we also understand how to work with buyers because we know what banks we’re looking for when it comes to buying a short sale. So contact us for more information if you are looking to buy or sell a Castro Valley short sale.