FHA NEW GUIDELINE

•1.       Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending , will go into effect April 5, 2010 new basis points to 2.25%

•2.       New borrowers will now be required to have a minimum credit score of 580 to qualify for maximum financing. New borrowers with less than a 580 credit score will be limited to a 90% loan-to-value ratio.

•3.        Update the combination of credit scores and down payment requirements for new borrowers

•4.        FHA borrowers will be limited to 3% seller concessions.

•5.      FHA has waived the regulation that prohibits the use of FHA financing to purchase properties that are being resold within 90 days of the previous acquisition. The waiver of the regulation took effect for all sales contracts executed on or after February 1, 2010.