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FHA Changes in Upfront Mortgage Insurance and Sellers Concessions - CT FHA Mortgage Specialist

By
Mortgage and Lending with Canopy Mortgage - Leo Namiot 89769

FHA To Increase Upfront Premiums for FHA Mortgage Insurance And Increase Minimum Credit Score

FHA loans with a case number assigned on or after April 5, 2010, will have a 2.25% upfront mortgage insurance premium. This is a .5% increase. Case numbers are generally assigned when there is a contract with a property address, and a closing date AND the borrower has committed to go forward with the loan.

Note that the annual premiums (remitted on a monthly basis) will not change at this time.

For More Information please go to http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-02ml.pdf

Other changes include:

New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA with 3.5% down payment program. Borrowers with less than a 580 FICO score will be required to put at least 10% down.
NOTE: Already Most lenders now will not make loans to borrowers with FICO scores lower than 620. In fact it is almost impossible to find a lender who will now take on a mortgage with less than a 620 FICO score. - There has been rumors that 640 minimum is right around the corner.

And on a final note: Seller concessions will be reduced from 6% to 3%. HUD has not yet released an effective date for this change.

Free Mortgage Pre-Approvals @ www.LeoLends.com

Leo Namiot

CT Mortgage Specialist

Connecticut FHA Loans

Connecticut VA Loans

Connecticut CHFA Loans

Comments (1)

Eric J
Eric J - Dream Home Financing - Freehold, NJ
Dream Home Financing

Leo, thanks for the FHA post. I am going to send you an e-mail

Jan 21, 2010 11:15 AM