Spring 2010 FHA Guidelines Make Borrowing Tougher And More Expensive
By Chris Brown- Florida Home Loan Specialist | Certified Mortgage Planner, Chris Brown 407.367.2974
(Chris Brown | Certified Mortgage Planners)
Securing an FHA mortgage is about to get more expensive. In a statement issued Wednesday, the Federal Housing Authority outlined policy changes to its mortgage assistance program. The shift is meant to both reduce the government group's portfolio risk while strengthening its overall financials. For consumers, the changes mean higher costs. As listed in the official announcement, there are 3 major guideline updates for the FHA: Upfront mortgage insurance premiums are increasing to 2.25% from 1.75% Minimum downpayments for applicants with sub-580 FICOs are rising to 10 percent Seller concessions are being limited to 3%, down from today's allowable 6% Furthermore, the FHA has appealed to Congress to raise an FHA borrowers' monthly mortgage insurance premiums. To read the FHA's statement, i...
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