FHA announced today that it will begin using a risk-based pricing model. Meaning, applicants with lower FICO scores and down payments will pay a higher interst rate and insurance premium. However, applicants with higher FICO scores and down payments will pay a lower interest rate and insurance premium than they are currently paying. Click on the link below for a good article from Realty Times on the subject:
http://realtytimes.com/rtpages/20080519_washingtonreport.htm
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