On January 20, 2010, FHA announced several policy changes designed to strengthen its capital reserves. The changes are the latest in a series of changes designed to help FHA mitigate risk while fulfilling its mission to expand homeownership. The changes include:
- Mortgage insurance premium will be increased to 2.25%
- FICO scores and down payments for new borrowers have been updated
- Allowable seller concessions have been reduced from 6% to 3%
- Increased FHA enforcement on lenders
For more information about these changes see FHA’s press release located at: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016