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.
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Leo Namiot
CT Mortgage Specialist
Connecticut FHA Loans
Connecticut VA Loans
Connecticut CHFA Loans
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