FHA Policy Changes for April 05, 2010

l.  Mortgage insurance premium (MIP) will be increased.

  •     First Step will be to raise the up-front MIP to 2.25%

2.  Update the combination of FICO scores and down payment for new borrowers

  • New borrowers will now be required to have a minimum FICO score of 580 for FHA’s 3.5% down payment program.  New borrowers with less than a 580 score will be required to put down at least 10%.

3.  Seller concession will be limited from 6% to 3%.