Central Ohio Home Loan: Changes to FHA
ByCentral Ohio Home Loan: Changes to FHA
Borrowers looking for a FHA home loan in Columbus or Central Ohio should be aware of the upcoming policy changes at FHA. The changes were deemed necessary to reduce the portfolio’s risk and for FHA to remain solvent.
The 3 major changes are:
- Upfront mortgage insurance premium is increasing from 1.75% to 2.25%
- Sellers concessions will be maxed out at 3% down from the current 6%
- Minimum down payment will be 10% for applicants with a sub 580 FICO
These new guidelines will not go into effect until the spring. In my opinion the changes though costly will not hamper lending very much. Most lenders have self imposed a 620 credit score guideline on FHA lending. The changes will make FHA loans more costly buy hopefully it will ensure FHA lending will be with us for years to come.
If you have any questions regarding any FHA or conventional home loan in Columbus or Central Ohio please contact me and I would be glad to help.
