Recent changes to FHA loans

Not exactly certain when these changes will take place but it’s supposed to be “soon.”

If you have less than 20% down on a house you are required to get Private Mortgage Insurance and if you’re seeking an FHA loan you’ll have to pay an up front premium of 2.25% now instead of the previous 1.75%.

If you have a FICO score of 580 or below you’ll be required to put down 10% instead of the standard 3.5%. I’m told however that most FHA lenders don’t accept scores of less than 620 anyway.

Down payments were kept at 3.5%.

Seller concessions are now capped at 3% rather than the current 6%.

An FHA loan is a great way to get into a home if you have less than stellar credit but are currently paying your bills and have the income to afford a home. Plus you only need a 3.5% down payment.

If you would like some assistance with buying your first home I’d be happy to help you find one. Email me at beth@bethskinner.com to get started today.

photo credit: dougtone