Below are some of the upcoming proposed 2010 changes in FHA loan guidelines.  These changes are being made to FHA Loans due to rising defaults on FHA Loans.  Call your Mortgage Broker, TODAY, and find out if you qualify for a FHA Loan.  FHA Loans are still a GREAT way to move into your first Home!  Don't wait.....CALL TODAY!

1. Raising the up-front mortgage insurance premium: The premium will rise to 2.25 percent from its current 1.75 percent.  HUD is expected to release a Mortgagee Letter on Jan. 21 making the premium increase effective in the spring.

2. 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 percent down payment program.  New borrowers with less than a 580 FICO score will be required to put down at least 10 percent.  FHA expects this to take effect in early summer after it goes through the normal regulatory process.

3. Reduce allowable seller concessions:  The agency is lowering the maximum permissible level to 3 percent from its current 6 percent limit.  FHA expects this to take effect in early summer after it goes through the normal regulatory process.



Other GREAT terms for FHA Loan Buyers:

 Loan amounts up to $729,750 in Los Angeles

 Down payments as low as 3.5%

 Gift funds allowed

 Flexible qualifying guidelines

 Fixed- or adjustable-rate loans

 Low, competitive rates

 Along with these new and proposed guidelines, and higher limits, you, the qualified buyer, will may benefit from a FHA Loan.  Call your Mortgage Broker, TODAY or go to my "Helpful Phone Number" page for a Mortgage Brokers' name and number.

In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

 
HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities
 for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS.  The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Dawn Gonzales
REALTOR® 

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