It seems like everyday we are hearing new updates from the financial industry. FHA has just announced the following changes:
1.) Increase in the up-front mortgage insurance fee, paid by borrowers, from 1.75% to 2.25%.
2.) Allowable seller concessions will be reduced from 6% to 3%
3.) To qualify for the 3.5% down payment program, a borrower needs to have at least a minimum FICO score of 580. Borrowers with lower than 580 score will have to put down 10%.
The last change probably has the least impact on home buyers since currently represents a smaller segment of the market. Read more here.
(Update: The up-front mortgage insurance fee was subsequently reduced in October 2010 from 2.25% to 1% )
Hi Wendy, item 1 (the upfront mortgage insurance premium) goes into effect on case #’s issued on April 5, 2010 or later. People considering an FHA insured loan around this time, need to make sure they have their case # issued prior to April 5th!