The Federal Housing Administration is raising insurance fees that the borrower must pay and they also require higher down payments for the borrowers with poor credit.
Rules that is in effect now;
- Bank/appraisal management company now selects the appraiser
- No formal 2nd appraisal required on FHA Jumbo Loans ($417,001 -$697,500 in San Diego County)
- No more 90 day flip rule (certain FHA caveats may apply — i.e. new price must be warranted with documented upgrades, repairs, etc.)
- Minimum down payment is still 3.5%
Rules in effect April 5, 2010;
- Upfront Mortgage Insurance Premium will increase from 1.75% to 2.25%
- Minimum 580 FICO score for 3.5% down payment
- If FICO <580, down payment must be 10%
- Seller contributions will be maxed at 3% (from 6%)
For more information visit FHA Sets Tighter Lending Requirements.
To read 92101 Urban Living’s former blogs click on How to Qualify for FHA Approval in Downtown San Diego! and Stabilized Downtown San Diego Condo & Loft Values with the Elimination of the FHA 90 day Anti-flipping Rule!. ')}