Don’t Wait to Buy an Indiana Home

- Waiting Could Cost You $1000’s

This is no April Fool’s joke, but if you wait to buy an Indiana home you will be the fool. On April 5th, the required up-front mortgage insurance premium (MIP) will increase to 2.25%. So, buying a $150,000 home in Indiana with 3.5% down payment of $5250, the up-front MIP will be increased by $732.76. Granted, the up-front MIP is financed as a part of the loan, by why pay extra when you don’t have to.

Also, later on this Spring, Indiana Home sellers will no longer be allowed to give more than 3% in sellers concessions for closing costs and pre-paids. So, if the taxes or closing costs are more than previously thought the difference will be pushed upon the shoulders of the buyer.

The only way to avoid these forthcoming short falls in FHA financing is to buy a house early in 2010. Really, why would you wait to buy a new home. The first time home buyer tax credit expires on April 30th. Well, you need to be in Indiana home contract by then, and close by the end of June 2010, the same goes for “Move-up Buyer” tax credit as well.

I think you would be safe from these Indiana FHA increases if you have your mortgage application in by the end of March.

If you have any Indiana FHA or Indiana USDA home loan questions please let me know. I appreciate your business.

Dave Woodson – The Mad Mortgage Machine

Indiana FHA Expert

Stay tuned for the Mad Mortgage Machine Podcast coming out tomorrow