FHA will announce some major changes to their lending guidelines that will have quite an impact on lenders and borrowers alike. 

Upfront Mortgage Insurance
The Upfront Mortgage Insurance that FHA requires on most of their loans will be increased from 1.75% to 2.25%.  This amount is added to the final loan amount, so there will not be additional funds needed at closing from the borrower. 

For example, a borrower with a loan amount of $200,000 would normally have $3,500 added to their loan balance due to the M.I.P.  Now that the M.I.P. has been raised to 2.25%, that amount will go to $4,500. 

Maximum Seller Contributions
Seller contributions to pay borrower closing costs is currently 6%, but will drop to 3%. 
Using a $200,000 purchase price, that is $6,000 less the seller could contribute. 

Low Credit Scores
Borrowers with credit scores below 580 will be required to put at least 10% down.  This is kind of a non-issue because few lenders that offer FHA loans will accept credit scores below 620 in today's market.  

Find out more about the Pros and Cons of the different lending programs at our website: http://www.churchillmortgage.com/Info/fha-va.aspx

You can have everything in life that you want if you will just help enough other people get what they want.
- Zig Ziglar 

My quote:  Do the right thing - not because you fear the repercussions - but because its the right thing.
Better quoted in James 4:17:  Anyone who knows the good he ought to do, and does not do it, sins. 

Make every day a good day by doing the right thing!