Per CAR Policy changes include:
- Raising the up-front mortgage insurance premium: The premium will rise to 2.25% from its current 1.75%. HUD is expected to release a Mortgagee Letter making the premium increase effective in the spring.
- Raising the minimum credit score requirements: New borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%. FHA expects this to take effect in early summer after it goes through the normal regulatory process.
- Reduce allowable seller concessions: The agency is lowering the maximum permissible level to 3% from its current 6% limit. FHA expects this to take effect in early summer after it goes through the normal regulatory process.
Also, my investors can celebrate because the 90-day flipping rule has been lifted temporarily. That’s exciting for the FHA Buyers, too!
I’ll update ya’ll about YPN information and laws when I get back from the CAR Business Meetings!
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