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Austin Mortgage News |
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Increase in Upfront Premiums for FHA Mortgage Insurance
.5% increase in upfront premiums, seller concessions reduced from 6% to 3%
FHA loans with a case number assigned on or after April 5, 2010, will have a 2.25% upfront mortgage insurance premium. This is a .5% increase. Case numbers are generally assigned when there is a contract with a property address, and a closing date AND the borrower has committed to go forward with the loan.
Annual premiums (remitted on a monthly basis) will not change at this time.
Please go to HUD.org. for more information.
Other changes include:
- New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. Borrowers with less than a 580 FICO score will be required to put at least 10% down.
- NOTE: Most lenders will not make loans to borrowers with FICO scores lower than 620.
- Seller concessions will be reduced from 6% to 3%. HUD has not yet released an effective date for this change.
My consultation is always free. If you or someone you know has questions, please contact me, Max Leaman:
512-293-1239 (Cell) and 512-617-5636 (Office). |
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Next Article
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
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