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Loan Modification

: Mortgage Lender Implode-o-Meter

FHA Set to Reduce Closing Cost Assistance This Summer

By Implode-Explode Heavy Industries

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"The FHA will reduce allowable seller concessions ? the percentage sellers can take from the sales price of a home to fund closing costs ? from 6% to 3%. According to an announcement in January, the current level of 6% exposes the FHA to excess risk by creating incentives for appraisers to increase the value of these homes. The change will take place in ?early summer,? according to the FHA, but a spokesperson said no specific date has been set."

Full post as published by Mortgage Lender Implode-o-Meter on May 17, 2010 (boomark / email).

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