LOW CREDIT SCORE? HIGHER FHA DOWNPAYMENT!
The Federal Housing Administration has announced that it is raising its minimum down payment for buyers with lower credit ratings.
Those with a credit score below 580 can now expect to put down at least 10-percent.
Those whose credit score is above 580 can still put down only 3.5-percent.
Upfront mortgage insurance premiums for those with below a 580 credit score will also increase from 1.75% to 2.25%. The FHA will reportedly seek Congressional approval to raise the amount of "annual mortgage premiums" over the life of the loan. The current maximum is 0.55-percent.
Just a personal sidenote: We're sometimes seeing problems for borrowers with a credit rating below 620!
Check out Reuters for more on this news: http://in.reuters.com/article/governmentFilingsNews/idINN1910413620100120
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