The FHA, Federal Housing Administration, recently raised the required down payment on a home in order to qualify for an FHA loan from 3.5% to 5%. Now, homeowners will need to be able to pay a down payment of at least 5% of the cost of a home in order to qualify for an FHA mortgage.
As a result, these changes will affect the price of house buyers can purchase in the Southend. The maximum loan amount has been reduced from $423,000 to $345,000, around an $80,000 difference.
With an estimated median home value of $149,280 in the Southend, buyers interested in purchasing a home around this price range will now need to be able to pay a down payment of around $7,464, as compared to the previous $5,225, in order to secure a loan from the FHA.