FHA has announced proposed guideline changes for the near future. Once the release the facts and start dates for any changes, I will update the details then. Here are some of the proposed basics they are looking at right now:
* Current FHA upfront MIP is 1.75% (this is typically financed on top of the loan amount) Change to 2.25%
* Current FHA monthly mortgage insurance premium is .55% Possible change, not disclosed amount yet
* Seller Concessions currently 6% (The basic guideline does not include seller paid closing cost as part of the Concessions, but things like a microwave, blinds, etc.) Change to 3% (We will confirm if the seller paid closing cost and pre-paids will change to 3% also)
* Minimum credit score of 580 (this is FHA's current guideline, but most investors are set at a 620 minimum) FHA is proposing a change for buyers under 580 to get a loan with 10% down payment (Not clear if the 10% can be a gift yet and/or if any investors will drop their current minimum to allow this)
As soon as we know the actual changes and their effective dates, I will let you know. If I can help you or any of your clients now to get them into a home before any such changes are made, just let me know.
You can Apply for FHA and other Mortgage Programs on my secure website at www.BrianFoxworth.com
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UPDATE 1/21/10
Current FHA upfront MIP is 1.75% (this is typically financed on top of the loan amount) Change to 2.25% Upfront MIP on April 5, 2010.
No word yet on the Seller Concessions for Closing Costs Proposed changes.
Get your Mortgage Loan before it becomes More Expensive!!!!!
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