FHA Announces Policy Changes
The Federal Housing Administration has announced a set of policy changes on Wednesday that will effect purchasers.
Here is a shortened version of the announced FHA Policy Changes:
1. Mortgage insurance premium (MIP) will be increased. The initial up-front increase is not yet determined, but will go into effect in the spring. (Click here for recent updates on the % increase)
2. New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%. This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
3. Allowable seller concessions will be reduced from 6% to 3%. This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
4. Enforcement will be increased on FHA lenders. Mainly, enhanced monitoring of lender performance.
For more detailed information and press releases on this topic, please refer to the HUD Press Release Room.
Team Annett Office