HUD is scheduled to report changes to FHA lending terms in an effort to shore up the program against increased financial losses.

The expected changes are as follows:

1. Increase the mortgage insurance premium, which is collected at closing and most often financed with the loan from 1.75% to 2.25% of the loan amount.
2. Require that any borrower with a credit score less than 580 put down 10%.  3.5% down will continue to be required by HUD with credit scores equal to and greater than 580.
3. Seller concessions will be limited to 3% of the purchase price verses the current 6% limit.