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On Thursday, January 21, 2010 by Ryan Langston posted in Legislative Blog
The Federal Housing Administration (FHA) announced today that it will change some of its lending policies.  The FHA currently endorses roughly 30 percent of all loans for home purchases and 20 percent of refinanced loans.   Under the regulations, enw borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA's 3.5 percent down payment program.  If a borrower's FICO score is less than 580, then the borrower will be required to put down at least 10 percent.  Allowable seller concessions (e.g. paying closing costs or giving free upgrades) will also be reduced from 6 percent to 3 percent of the home's value.  These policy changes, among others, will likely go into effect in the early summer.  For more information, click here.