Buyers looking to purchase a home in Rhode Island will face new changes this spring. According to an article in the Wall Street Journal on January 19, 2010, FHA is planning many changes.
1. UFMIP to go to 2.25% from 1.75%.
Currently FHA charges what is known as an upfront mortgage insurance premimum. This amount is typically financed into the loan amount but can be paid in cash by the borrower, seller or lender.
2. FICO scores less than <580 will be required to put 10% down, however, most lenders have an internal 620 minimum fico score requirement so it may be hard to find a lender to do a FHA loan at this fico score.
3. Seller concession contributions reduced from 6% to 3%.
Currently FHA allows the seller to pay up to 6% of the selling price to cover the borrower’s closing costs, pre-paids and other closing expenses.
4. FHA plans to require borrowers to produce more cash for down payments .
FHA requires a mimimum investment of 3.5% for the down payment. There is talk that the minimum down payment requirement may go to 5%.
Please feel free to contact me or apply for a mortgage on line at http:/
Lynda Mckenzie
RI license#137627/NMLS#137627
Direct: 401-524-9796
E-mail: lmckenzie@guaranteedrate.com
Web: http://www.guaranteedrate.com/lyndamckenzie
RI Licensed- 20102682LL
*This is not an offer to lend. 
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