House Closing Tips» FHA Policy http://www.closingonyourhome.com Tips on house closing costs, house closing documents and other need to know information when closing on a house. Tue, 25 May 2010 20:25:50 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 House Closing Costs Increase http://www.closingonyourhome.com/house-closing/house-closing-costs-increase/ http://www.closingonyourhome.com/house-closing/house-closing-costs-increase/#comments Wed, 20 Jan 2010 20:42:19 +0000 admin http://www.closingonyourhome.com/?p=825 January 20, 2010 — today the FHA announced policy changes on FHA Mortgages.  The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement.

FHA Mortgage Policy Changes:

  1. An increase in the Mortgage Insurance Premium (MIP) from 1.75% to 2.25%.  On a $200,000 loan, that would cost you an extra $1,000 in house closing costs.  This policy change goes into effect in the spring.
  2. New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will see an increase in their house closing costs as they will be required to put down at least 10%.  This policy change goes into effect in the early summer.
  3. Seller concessions reduced from 6% to 3%.  A seller concession is when the seller pays all, or a portion of, your house closing costs.  A 3% reduction doubles the amount of house closing costs that have to come out of the buyer’s pocket; which is especially hard for first time home buyers.  This policy change goes into effect in the early summer.
  4. Increase enforcement on FHA lenders
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