Increase in Upfront Premiums for FHA Mortgage Insurance

.5% increase in upfront premiums, seller concessions reduced from 6% to 3%

Rates IncreaseFHA 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 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.

Leaman Team wants to make sure your questions are answered. Please call Leaman Team today to discuss your home financing: (512) 710-1400 or email