Like the banking sector, FHA must maintain capital ratios and with the increased popularity of FHA in the absence of other alternative products, they now insure about 30% of all new loans. FHA is nearing the limits of loans they can make based on their capital ratio. In an effort to fix this problem, FHA will be raising their upfront mortgage insurance premium to 2.25% from 1.75%. Additionally, they have requested approval for an increase in the monthly fee as well. They are maintaining the 3.5% down payment requirement unless the credit score is under 580 in which case a 10% or greater down payment is required.
To get a free pre-approval for a FHA, VA or conventional loan, call David Wolsky at 520-275-2536 or email me at david@davidwolsky.com.
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