fha: FHA to Tighten Lending Rules
- 01/20/10 01:35 AM
The Federal Housing Administration announced the changes in 3 primary areas that will affect prospective home buyers.1. Increase the upfront mortgage insurance from the current 1.75% to 2.25%2. Increase the credit scores requirement to 580 for borrowers wishing to put less than a 10% down payment3. Reduce the amount the seller can pay towards the buyers closing costs from the current 3% to 6%.The only change that should cause grief to borrowers would be the reduction in seller paid closing costs. While FHA does not currently require a 580 score to qualify for an FHA loan, most lenders currently require a … (4 comments)
The Federal Housing Administration announced the changes in 3 primary areas that will affect prospective home buyers.1. Increase the upfront mortgage insurance from the current 1.75% to 2.25%2. Increase the credit scores requirement to 580 for borrowers wishing to put less than a 10% down payment3. Reduce the amount the seller can pay towards the buyers closing costs from the current 3% to 6%.The only change that should cause grief to borrowers would be the reduction in seller paid closing costs. While FHA does not currently require a 580 score to qualify for an FHA loan, most lenders currently require a … (4 comments)
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