Changes are coming for home buyers wanting to buy homes using a FHA loan.
The FHA sent out a press release on their proposed changes. More details are said to be coming forth by end of January 2010.
Here are some of the major revisions that have been announced:
1. Mortgage Insurance Premium – up-front to go from 1.75% to 2.25% and monthly fee of .55% may go up accordingly as well
2. FICO scores of 580 and below will require 10% down instead of the 3.5% minimum. Most lenders have their own guidelines already in place and require a 620 score to begin with so this ruling will not effect most
3. Reduce allowable seller concessions from 6% to 3%
Stay tuned for more changes likely to come.
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