FHA Toughens Down Payment Rules, Raises Mortgage Insurance Premiums
The Federal Housing Administration (FHA) announced that will raise the minimum down payment required for its higher risk borrowers, limit the allowable seller's contributions and increase their mortgage insurance premiums.
To build capital and reduce risk, the FHA said that it will raise mortgage insurance rates and tighten credit score requirements. The major changes include:
At this point, the expected timing of the upfront mortgage insurance premium increase will be in the spring, and the other changes will take place over the summer.