FHA, VA, & Declining Markets
Tuesday, December 18th, 2007Many states across the country are affected by declining market indicators in automated underwriting findings. Beginning January 15, 2008, applications taken after that date will be subject to a 5% LTV reduction for FNMA Conventional loans. This will be a 5% larger down payment required by borrowers desiring to purchase in a declining market area.
FHA and VA will not be subject to the 5% declining market LTV reduction. You can count on FHA and VA mortgage loans in the state of Florida.