On Friday, Jan. 15 NAR sources in Washington D.C. indicated that FHA is about to announce the following changes to its purchase finance programs.
Borrowers will be unable to finance upfront premiums;
Seller concessions will be reduced from 6% to, possibly, 3%;
Borrowers must have a minimum FICO score and their maximum loan-to-value ratio may be impacted by their FICO score; and Mortgage Insurance Premiums may be raised from their current 1.75% level.
Lender Issues: While the final lender eligibility rule has not been published, NAR is reporting the following proposed changes for FHA lenders:
Increasing net worth requirements of lenders to $2.5 million over the next 3 years; 20% of lender net worth must be liquid assets; and Increased default monitoring by lender underwriters.