FHA Home Loan Policy Changes
2010 February 1
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?“
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Thanks Bob for the post. Would you consider these drastic changes or pretty normal changes? I will look at the older blog posts that you suggested. Thanks!
After what has happened with all these loans defaulting, I think it’s a great idea to crack down on those getting one now to prevent anything from happening again!
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And you wonder why we didn’t do this earlier? Too much faith in the human race. Too much.
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