Buying a home with an FHA loan can be a great way to get into a house with a very low downpayment.  If this is something you’re considering, you should know that some of the costs of FHA loans are going to be changing (they will affect loans with FHA case numbers assigned after April 1, 2012).  The changes in costs include:
1) An increase in the “up-front mortgage insurance” (a one-time cost at closing usually paid by the borrower) from 1% to 1.75% of the amount of the loan.
2) An increase in the monthly charge for mortgage insurance.  The amount of the increase will depend upon the amount of the loan, but regardless of the amount of the increase, it will increase the monthly cost of the loan (which decreases the amount you can borrow for the amount you have budgeted for your monthly housing costs).
If you have any questions about buying with an FHA loan or any other issues affecting you in the current real estate market, contact Leaf, Realtors at 908-975-9756.