I just recieved an interesting email from a local BOA loan officer. He gave reference to a HUD article talking about the recent or upcoming changes for FHA. Here are some cliff notes on the article:
Cliff's notes from the article below:
1. The UFMIP will be increased from 1.75% to 2.25%, they may also increase the monthly MIP...they're saying this will occur in Spring
2. Borrowers with FICO scores less than a 580 will need at least 10% down...they're aiming for early summer
3. Seller contributions will be reduced from 6% to 3%...they're aiming for early summer on this too
4. Increased audits on FHA approved lenders to monitor performance and compliance...effective immediately
So what do you think of all the FHA changes coming about? I've heard that they are allowing the 203K for investors now, slacking back on the chain of title regulations for investors as well. It seems like one day they announce things to make it easy (and maybe even a little too easy) for someone to get their $$$ for a house and the very next day they tighten the belt on something else making it harder again for the others.