Changes to FHA Lending
Seller help is being reduced from a maximum of 6% to 3%.
The up front mortgage insurance premium that gets rolled into the mortgage is being raised to 2.25%
from 1.75%
Down payment is remaining the same at 3.5%
This means that with the maximum seller help of 3% the buyer will need 3.5% down plus an additional
1-2% to cover the remaining closing costs. Borrowers will need more money or more gift.