As we mentioned back in December, NAR’s very own Realtors Confidence Index showed that 39% of recent buyers purchased a home with a Federal Housing Administration-insured loan. FHA Loans play a vital role in the housing market at the moment. FHA financing provides affordable mortgage financing to homeowners, particularly first time homebuyers. With Condo’s as we recently wrote about there will be some changes coming in the new year which could change the dynamics of condo sales financed using FHA insured loans. However something which has been rumored over the last few weeks with regards to changes has been announced. Realty Times says that "FHA is tightening up its standards for home buyers - but the changes are not as tough as some analysts had feared - especially on downpayments." They have made an increase in the "upfront" mortgage insurance premium charged all borrowers. Under the new plan, which will take effect shortly, FHA applicants will be charged a higher entry fee on insurance: An upfront premium of two and a quarter percent (2.25%) of the loan amount, instead of the current one and three quarters (1.75%)percent premium. But there will be no immediate increase to FHA's current annual insurance premiums of zero point fifty five percent (0.55). Also, applicants with FICO credit scores below 580 will now have to make downpayments of at least 10 percent, up from three and a half percent currently. But most lenders who offer FHA insurance mortgages already require a minimum score of 620. Thankfully the minimum downpayment level of 3.5% remains. But seller concessions of 6% have been slashed in half to 3%. It is hoped that as the economic recovery and housing recovery continue that restrictions can be relaxed further. With prices being at their lowest for years in some parts of the region and FHA financing remaining an excellent opportunity for buyers, now really is the best time to buy a property in Ann Arbor. Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs. Find out what your Ann Arbor Area Home is Worth Search all listings in Michigan with pictures and tours...Free! Your Home Sold Guaranteed Kathy Toth & Team: Ann Arbor Area Real Estate Experts www.KathyToth.com Ann Arbor Market Center Keller Williams Realty