1
Feb
FHA Home Loan Policy Changes
FHA home loans
FHA home loans
The new FHA policy changes are as follows:
1) Borrowers with less than 580 credit scores will be required to put 10% down instead of 3.5%.
2) Upfront mortgage insurance, MI, will increase to 2.25% from 1.75%.
3) The maximum seller contribution is now 3% rather than 6%.
4) Lenders will now be graded and performance reported. Lenders found violating FHA rules will no longer be allowed to make FHA loans.
To understand the reasons behind these changes, I would suggest one read my 9-20-09 post “FHA Home Loans in Worst Shape in 75 Year History” or my 12-16-08 post “FHA Home Loans – The Next Bailout?”