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% )