FHA changes that went into effect on April 5th
1. The Up-front MIP has been increased from 1.75 to 2.25. The MIP can still be financed. This only applies to forward mortgages. The increase will have the largest impact on helping FHA improve its capital position.
Downpayment and Credit Score:
2. For borrowers with FICO's below 580, a 10% down payment will be required - no change for borrowers at or above 580. This will be accomplished through a Mortgagee Letter and will be effective April 5th. MOST LENDERS REQUIRE FICO SCORE OF 620-640.
3. No changes to seller concessions have been adopted at this time. Remains at 6%.