If you’re planning on using the Federal Housing Association (FHA) as a means of securing a mortgage for Miami Beach real estate, you may want to get started as soon as possible. The FHA is modifying their restrictions and requirements which could make it tougher to get an FHA approved loan.

Under the new guidelines buyers will have to pay a larger amount for upfront mortgage insurance while reducing the amount that sellers should contribute towards closing costs. These insurance premiums will now be 2.25 percent of the loan in question, the amount that sellers need to put towards closing has been reduced from three to six percent. These new changes are expected to go into effect during the spring and the summertime so you still have some time to find Miami Beach real estate before it gets harder.

These changes are particularly important because FHA loans are popular among first time buyers who are usually unable to make large down payments. These new changes mean that there will greater out of pocket expenses and thus, it won’t be as easy to buy property like Miami Beach condos. Are these changes necessary the right thing to do?