Are BIG FHA CHANGES coming soon?

Minneapolis, MN: FHA is seeing comments about possible changes to their very popular home loan program. From inception in 1934 until around 2000, FHA was always the #1 home loan financing option, but fell to just 3% of loans by 2007. Today FHA provides 30% of all loans, and the value of mortgage insurance written jumped from $56 billion in 2007 to $300 billion in 2009.

The biggest changes being debated have to do with credit score requirements, and how that will effect down payment. They are also seeking to reduce the maximum amount a seller can pay for closing costs on the buyers behalf. 

Below are two very interesting charts directly from FHA showing delinquencies by score and seller paid closing costs. It is no wonder just about every FHA lender now only lends for clients with at least a 620 score, and FHA is thinking about reducing seller paid closing costs.

FHA Delinquencies by Credit Score and Downpayment

FHA Delinquencies by Seller Concession (seller paid closing costs)

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	Joseph Metzler, MLO, MMS, UMB 33 Wentworth Ave E #290, Saint Paul, MN 55118 Ph: (651) 552-3681   NMLS #274132 Cell: (651) 705-6261 / Fax: (651) 994-6425 www.JoeMetzler.com          We Beat The Banks Everyday

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