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FHA has tightened it's lending requirements in order to maintain their capital reserves and manage risk better. Here is what a recent article in Realtor Magazine had to say. They are raising the upfront mortgage insurance premium (effective April 5th), increasing the minimum down payment for some borrowers, and reducing the seller concessions (both to be posted in the Federal Registry in February with a 60-90 day comment period). The FHA is also seeking legislation to raise the annual mortgage insurance premium above the current level of .55 percent.What does this mean to the borrower? With the upfront mortgage insurance premium … (4 comments)
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