December 22, 2024

FHA home loans
FHA home loans

The new FHA policy changes are as follows:

1)  Borrowers with less than 580 credit scores will be required to put 10% down instead of 3.5%.

2)  Upfront mortgage insurance, MI, will increase to 2.25% from 1.75%.

3)  The maximum seller contribution is now 3% rather than 6%.

4)  Lenders will now be graded and performance reported.  Lenders found violating FHA rules will no longer be allowed to make FHA loans.

To understand the reasons behind these changes, I would suggest one read my 9-20-09 post “FHA Home Loans in Worst Shape in 75 Year History” or my 12-16-08 post “FHA Home Loans – The Next Bailout?

San Diego California real estate lawyers

4 thoughts on “FHA Home Loan Policy Changes

  1. Thanks Bob for the post. Would you consider these drastic changes or pretty normal changes? I will look at the older blog posts that you suggested. Thanks!

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