Upcoming FHA Loan Changes

As of today, January 20, 2009, the Federal Housing Administration (FHA) has announced some upcoming changes in their policies. The seller concession maximum has been been reduced from 6% to 3%. The FHA will continue to allow the upfront premium to be financed but the upfront mortgage insurance premium has been increased to 2.25%. The down payment of  3.5% will remain the same. Although these changes have been announced by the FHA, it will take the a few months for these changes to take affect.