Highlights are:

1)      The upfront premium is being increased from 1.75% to 2.25%.  This is still able to be financed in the loan amount.

2)      Credit scores less than 580 will require 10% down, most lenders have already raised the bar on this issue to 620 so this should not have a dramatic impact.

3)      They are keeping the minimum downpayment at 3.5% although there was discussion about raising it to 5%, this is very good news.

4)      This summer the maximum contribution from a seller will be reduced from 6 to 3 %.  Now is the time to put these deals together where seller contributions are critical before the change occurs and the tax credit goes away on April 30th.

5)      FHA will be announcing tougher sanctions against lenders that violate FHA underwriting standards. This will eliminate rogue lenders who create confusion in the marketplace with false promises.  

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