FHA Loan Changes

Posted by Calum and Kathleen MacKenzie on Saturday, January 30th, 2010 at 1:04pm.

First time homebuyers using FHA financing need to be aware there are some important changes coming that will effect what it will cost you to obtain FHA financing...

• The upfront mortgage insurance premium (UFMIP) will increase to 2.25 percent up from 1.75 percent. Contrary to reports, FHA will continue to allow the financing of the UFMIP (in other words, it can still be rolled into the loan). (April 5, 2010)

• Borrowers with a credit score below 580 will be required to have at least a 10 percent down payment. (Summer 2010)


• The minimum down payment for borrowers with above a 580 credit score will remain at 3.5 percent.


• Allowable Seller paid concessions (towards closing costs) will be reduced to 3 percent from 6 percent. (Summer 2010)


• Possible increase annual Mortgage Insurance Premiums (MIP). Review in February.


• Hillsborough, Pasco, St Pete, Clearwater areas  - the loan limit for a single family is 292,500.

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