As we all know, the past year has been a whirlwind of changes in Conventional and FHA lending. We've seen zero down go away, 3% down go away, and the PMI rules change month after month.

Recent PMI changes have included the following:

RMIC- Minimum of 740 Score, 90% LTV, no second homes

MGIC- Max DTI of 41%, 680 score, 700 for declining markets, and 720 for all of Florida, no second homes

PMI- Minimum score of 680, Max DTI of 41%

With all of these continued dramatic PMI changes, FHA is an excellent option! FHA has lower down payment requirements, and down payment can still be a gift:

• 3.5% down
• Down payment can come from buyer, immediate relative, employer, gift from friend, or grant
• Seller can pay up to 6% in closing costs and pre-paids

FHA is a tried and true product that has changed less than other products in this volatile time. Keep in mind that the best rates come to those with scores of 620 or better!