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 FHA is right for you - and if so - how will it impact your purchase decision.
Stay tuned for more news from FHA!
Senior Mortgage Planner
12500 Fair Lakes Circle, Suite 130
Fairfax, VA 22033
(703) 409-2002 cell
(571) 405-2549 direct fax
(571) 490-7129 Leslie Settle direc