FHA Changes

FHA has announced more changes.

As of 4/5/10, the upfront mortgage insurance premium, that all buyer's using FHA loans have to pay, will increase to 2.25% of the purchase price, up .5% from its current amount. The annual premiums for the mortgage insurance will not change.

Fortunately, as long as a borrower has a 580 or greater FICO credit score, they can still put as little as 3.5% down. However, if a buyer's FICO is less than 580 they will be required to put at least 10% down.

One last change, that has no effective date announced as of yet, is that the allowable Seller concessions (Seller paid Buyer closing costs) will be reduced from 6% to 3%.

Click here for more information.

Source: Sheila Bryan, Cobalt Mortgage