Changes to FHA Lending Announced

FHA has recently announced significant changes to FHA loans:

  1. The initial upfront MIP will increase from 1.75% to 2.25%, effective for any FHA case numbers issued starting on April 5, 2010.
  2. The holding period of 90 days for a seller (to an FHA purchaser) has been waived for contracts executed on or after February 1, 2010. This applies to foreclosures and investors (still reviewed on a case-by-case basis).

The following changes will go into effect in the summer of 2010, because they must go through an official approval process, including publication in the Federal Register:

  1. Borrowers will need a minimum credit score of 580 to qualify for the maximum loan percentage with only 3.5% down.
  2. Borrowers with less than a 580 credit score will be limited to a maximum of 90% financing (10% down).
  3. Seller concessions will be limited to 3%.

posted: Mar 25, 2010 | No Responses

Posted by:  Wakamo & Associates

Melissa Wakamo and her dynamic team of agents and support staff provide buyer and seller clients with exceptional service and proven results. Since the start of her real estate career in 2004, Melissa has proven to be a true advocate for her clients and has consistently performed in the top 1% of agents

“When I started my real estate career, I wanted to work in my local community and get to know my neighbors. Now, I realize how important that local expertise is to our clients. At Red Robin REALTORS®, all of our agents are specialists in working with buyers and sellers in Atlanta’s intown neighborhoods.”

Share. Let your friends weigh in on this one...