Thursday, December 11, 2008

When Does the FHA Down Payment Go to 3.5%?

Q: I know the FHA down payment goes from 3% to 3.5% on January 1, but what is the down payment if the sales contract is signed in December and the closing is in January?

A: The down payment is determined by the date that the lender gets the FHA case number. As soon as a sales contract is signed, your mortgage broker can get a case number. It takes about 5 minutes. As long as the case number is obtained in December, the 3% down payment applies -- it doesn't matter when the loan closes.

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