fha mortgage insurance premium downpayment credit score rules: FHA Announces Changes to MIP, Downpayments and Credit Rules
- 01/20/10 03:55 AM
To build capital and reduce risk, the FHA announced that it will raise insurance rates and tighten credit score rules. The major changes include increasing upfront premiums from 1.75% to 2.25%, reducing the maximum seller contribution from 6% to 3%, and increasing the level of FICO scores from 500 to 580 below which a down payment of 10% is required. At this point, the expected timing of the upfront premium increase will be in the spring, and the other changes will take place over the summer. If you're in the market to buy by spring, give Cindy a call to see if … (3 comments)
To build capital and reduce risk, the FHA announced that it will raise insurance rates and tighten credit score rules. The major changes include increasing upfront premiums from 1.75% to 2.25%, reducing the maximum seller contribution from 6% to 3%, and increasing the level of FICO scores from 500 to 580 below which a down payment of 10% is required. At this point, the expected timing of the upfront premium increase will be in the spring, and the other changes will take place over the summer.
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