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HUD May Tighten FHA Requirements. What Are Your Thoughts?

By
Real Estate Agent with BHHS Fox & Roach | www.DelawareValleyRE.com

In an effort to bring the Federal Housing Administration's reserves above the mandated 2% minimum, HUD's Secretary Shaun Donovan requested authority - from Congress last week - to tighten its FHA Requirements.

Although final numbers have yet to worked out, HUD is considering:

  • Increasing down payment from 3.5% to 5%.
  • Reducing maximum seller concessions from 6% to 3% and
  • Raising minimum FICO score from 500 to 620

HUD may soon tighten FHA Requirements... What are your thoughts on this?