HUD is scheduled to report changes to FHA lending!

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.