Borrowers looking to FHA for loan guarantees should be aware that new rules are being put into effect during this upcoming summer. Final date of implementation has not as yet been announced, but new rules will require your mortgage lender to charge a minimum 3.5% down payment.
Also, FHA minimum credit scores will require at least a credit rating of 580. Banks and most current mortgage lenders are funding mortgages in the 620-630 range, so the FHA guideline may not impact FHA borrowers to a great extent. There are also changes in the amount of seller paid concessions which may be counted toward settlement costs.
Be sure you understand the FHA Guidelines prior to entering into any agreement with a Mortgage lender on your new home.
.png){kind=small}
