BluefoxToday blog : FHA Making More Changes 1/2010

FHA Making More Changes 1/2010

The Federal Housing Administration is currently insuring more than 3 of every 10 loans originated... and they see thatLooking for a new house? as a risky proposition!

Because of that, FHA is expected to announce changes today, in an effort to protect the American Taxpayer (who backs the default insurance on this program!)!

Expected changes include:

  • Raising the Upfront Mortgage Insurance Premium (UMIP) from the current 1.75% to 2.25%.  This means that when you borrow $100,000 on a FHA mortgage loan, and additional $2250 will be added to the mortgage that you pay back... so your $100,000 mortgage just turned into $102,250.  If you move, part of that Mortgage Insurance is refunded - so it's not a bad deal! (Click here for more details on how FHA "PMI" works!)
  • Changing the amount a Seller can contribute to Closing Costs.  Currently a Seller can contribute 6% toward closing costs to a transaction.  This is expected to change to a maximum of 3%.

There are news reports that the minimum credit score for FHA is also going up... however, the reality is that 580 has been the minimum credit score that is offered by Lenders for years! 

The REALITY is that you really need a 620 credit score to get best priced mortgage offerings!

Check The Facts... THEY CHANGE!


IMPORTANT TO NOTE! FHA has changed it's rate on MIP (now) FOUR TIMES in the past 2 years. Because of this you could see MULTIPLE posts online saying MIP is 1.5, or 1.75, or based upon your credit score! These are all TIME SENSITIVE pieces of information... if you are CURRENTLY looking for a FHA mortgage, you should consult with a mortgage professional!

If you or your clients are considering a FHA mortgage loan to finance a home purchase, please call Steve and Eleanor Thorne, First Financial Services, 919-649-5058! 

We offer the very best mortgage rates available and have the ability to pre-qualify you over the phone in about 20 minutes! 

This is a GREAT time to purchase a home in the Triangle!

Comment balloon 5 commentsEleanor Thorne • January 20 2010 08:08AM


Thanks for the information. We learn a lot of good information for ourselves and clients from Active Rain. Best Regards,

Posted by Edward & Celia Maddox, EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD (The Celtic Connection Realty) about 11 years ago


It is an ever-changing lending landscape.  Sellers need to embrace buyers with strong financials, methinks, more than ever.

Posted by Mike Jaquish, 919-880-2769 Cary, NC, Real Estate (Realty Arts) about 11 years ago

Eleanor -  Nice to see a fellow professional who is keeping up with the proposed laws and changes in FHA financing.  You are great at what you do and do an excellent job of keeping consumers educated!

Posted by Nevin Williams, Senior Mortgage Advisor (Fairway Independent Mortgage Corporation) about 11 years ago


Things are constantly changing nowadays in this our beloved mortgage business and thanks for keeping all the readers aware of what's going on.

Posted by Esko Kiuru about 11 years ago

I am guessing this is not the last change seems like every time I take a buyer in a new set of requirements pop up.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) about 11 years ago