This week FHA today announced major underwriting changes to strengthen its reserves while maintaining the agency’s critical position in the mortgage market at a time when its federally backed loans comprise about 40 percent of the market.
Among the changes: an increase in the up-front mortgage insurance premium by 50 bps to 2.25 percent; a FICO credit score of at least 580 for borrowers to qualify for the agency’s 3.5 percent minimum down payment (other borrowers must put down a 10 percent minimum); and a reduction in seller concessions from 6 percent to 3 percent of the mortgage amount.
Here is the full article released by NAR.
