Gibran Nicholas, Chairman, CMPS Institute www.CMPSInstitute.org writes in Volume 31 number 20 of Bottom Line Personal for October 2010 that soon there will be higher monthly fees, larger down payments and tougher credit-score requirements for loans backed by the Federal Housing Administration (FHA).
The article states that the rules passed by Congress and implemented by the FHA are designed to make sure that the FHA stays solvent by improving the quality of its loan portfolio. Monthly premiums for mandatory credit-risk insurance will be increased and for the first time the FHA will require that loan applicants meet credit score requirements with loan term adjustments based on scores. It also notes that there will be limits on how much of a home's price the seller can contribute toward the buyer's price.
The articles ends by recommending you to check if you qualify for better terms with Fannie Mae or Freddie Mac home loans instead of FHA.
See you soon.
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