HUD is scheduled to report changes to FHA lending!

January 20, 2010 · Leave a Comment

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.


Categories: FHA financing · First-time homebuyer · Real Estate
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