FHA Announces Changes to MIP, Downpayments and Credit Rules

By
Real Estate Agent with Keller Williams Realty | Northern Virginia | 703.635.0388 0225 189802

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!

____________________________________

Cindy Fox
Senior Mortgage Planner

12500 Fair Lakes Circle, Suite 130

Fairfax, VA 22033

 cfox@mcleanlending.com

(703) 409-2002 cell
(571) 405-2549 direct fax

(571) 490-7129 Leslie Settle direc

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
fha mortgage insurance premium downpayment credit score rules

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
758,336
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Lisa, there have been rumors for quite some time that we would see FHA changes. The FHA "score cards" have been in pain since they have caught all the lower credit score loans these days.... It will still be a better alternative to many low down Conventional loans, and for a $200k loan it looks like it will only be about a $6 change in a monthly payment.

Jan 20, 2010 04:01 AM #1
Rainer
278,088
Lisa Moroniak
Keller Williams Realty | Northern Virginia | 703.635.0388 - Leesburg, VA
SFR - Short Sale & Foreclosure Certified

Hi Robert, it's always important to step back and take a look at the "bigger picture", rather than freak out at another lifeline that is threatening to be taken from us.  I agree - in the grand scheme of things it's a small price to pay for homeownership affordability.

Jan 20, 2010 08:33 AM #2
Rainmaker
758,336
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

I am always one to look for the positive spin on things Lisa. We get bombarded with so much negativity we have to create our own positives!

Stay Positive!

Rob

Jan 21, 2010 01:13 AM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
278,088

Lisa Moroniak

SFR - Short Sale & Foreclosure Certified
Ask me a question
*
*
*
*
Spam prevention

Additional Information