Increase in Upfront Premiums for FHA Mortgage Insurance -
FHA loans with a case number assigned on or after April 5, 2010, will have a 2.25% upfront mortgage insurance premium. This 0.5% increase is roughly $750 on a $150,000 loan. This goes into effect April 5, 2010.
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 http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-02ml.pdf. for more information.
SOME OTHER CHANGES -
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.
