FHA Changes

In June of 2013 FHA has change their guidelines in how to purchase a home using there program. The intentions for the new guidelines is to avoid another housing market meltdown, but the stipulations seems to be very burdensome for good qualify buyers who want to own a home. Example of one of the changes is the PMI-Percentage Mortgage Insurance which is added to a monthly payment because the buyer is financing less than 20+% and also was a way to protect the mortgage loan for a duration of time for a buyers monthly payment and would eventually drop of the monthly payment as soon as the home has more than 20% in it, but now FHA is saying that the PMI will stay on the loan for the duration of the loan. i.e if your principle and interest on a $380,000 loan is $1,707 base on 3.5% down payment they will add $450 PMI to the loan which will bring your loan to $2,157 but the taxes and insurance has yet to be applied and that my buyers varies base on where your buying your home. The process is deeper than my example, but the idea is for buyers to have more money, higher scores and enough income to facilitate the cost of owning a home. They are saying if your scores are below 680 and your making $80,000 or less and have $35,000 that your monthly payments will be high. Which is fine, but what about the buyers who has the $30,000, making $80,000 and a score of 640-670?? Those are reasonable numbers to work with, but it's not reasonable according to FHA and the buyers will have to pay for it. So If your looking to buy make sure you have a monthly payment in your head you're desiring to pay and then ask your lender to qualify you for the price of home you want to buy. Be very specific to tell them to please add the PMI, estimated property taxes ( base on where your living) and property insurance. It will ease the areggrevation of finding a home and then you'll see what your monthly payments are rather higher than what you thought. Research, research and more research your lenders and rates.. Visit www.bankrate.com and FHA.gov