FHA Changes Include Higher Down Payments for Some Buyers
By Dawn Crawford
Posted on: Jan 22nd 2010
On January 20, 2010, FHA announced four important changes that will help it manage risk and strengthen its capital reserves.
- The up-front mortgage insurance premium (MIP) will increase to 2.25% (from 1.75%) this spring.
- Homebuyers with FICO scores below 580 will be required to have a minimum 10% down payment starting in early summer.
- FHA will reduce allowable seller concessions from 6% to 3% in early summer.
- HUD will enhance monitoring of FHA lenders and increase enforcement.