Posted by: RAPV | January 25, 2010

FHA Policy Changes

See full size imageOn January 20th, the Federal Housing Administration announced a few changes would be made in late spring, early summer. There are three major components to the changes:

  • The upfront mortgage insurance premium (UFMIP) will increase to 2.25 percent up from 1.75 percent.  Contrary to reports, FHA will continue to allow the financing of the UFMIP.
  • Borrowers with a credit score below 580 will be required to have at least a 10 percent down payment.  The minimum down payment will remain at 3.5 percent for all other borrowers.
  • Seller concessions will be reduced to 3 percent from 6 percent.

Have questions about FHA-related information? NAR has provided members with an FHA Toolkit!

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