Thanks to Steve Friedman with Fidelity Mortgage for this bit of news:
As you may have heard, FHA announced today that it will seek to implement changes to current policies. These changes are all restrictive and I have attached the announcement from HUD to this email.
Snapshot:
· The upfront mortgage insurance premium will increase by 0.5% from 1.75% to 2.25%.
· The maximum seller concessions will decrease from 6% of the sales price to 3% of the sales price (in line with conventional financing).
· There are some credit score/LTV limitations that should not affect “A” paper lenders as well.
It is important to note that FHA will issue a notice and have a comment period on most of the items prior to implementation. There is no hard date for conversion but, per HUD, the changes will go into effect in the spring or early summer.
