Here are the 5 things you need to know about these changes...
1. One single down payment requirement of 3.5% for all purchases. NO (as of now) Selller-Assisted down payment programs are allowed.
2. Closing costs/prepaids are in addition to the 3.5% down (6% seller contribution allowed)
3. New maximum LTVs (based on lower of sales price or value) are:
- 96.50% for all purchases.
- 98.28% for all regular rate and term refinances (cash out remains at 95%).
- 98.52% for all streamline refinances.
4. These changes are effective October 1st, 2008.
5. Purchases already in the pipeline will have until December 31st to be assigned a case number. After January 1st, 2009, all purchases will require the new down payment requirements.
I will post more updates as they become available.
