FHA Policy Changes Highlights
FHA announced today some changes to address risk and strengthen finances. The mortgage insurance premium will be increase, seller concessions will be reduced, and FICO scores will determine what down payment percentage a buyer will qualify for.
- The up front mortgage insurance premium (MIP) will now be 2.25%. This will take effect in the spring.
- Seller concessions will be reduced from 6% to 3% and will go in effect in the early summer.
- Borrowers must have a FICO score of 580 or above for FHA's 3.5% down payment program. A score lower than 580 would mean a down payment of at least 10%. This will also go into effect in early summer.
For any buyers qualified for FHA financing that are waiting for "the best time to buy". The time to get off the fence and buy is NOW NOW NOW!!!
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