Springs Lending - Colorado Springs Mortgage Company Near Denver and Pueblo » Mortgage http://www.springslending.com Sat, 28 Jan 2012 05:15:06 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 FHA … Ch… Ch… Changes http://www.springslending.com/fha-ch-ch-changes/ http://www.springslending.com/fha-ch-ch-changes/#comments Tue, 30 Nov 2010 21:14:31 +0000 admin http://www.springslending.com/?p=291 The Federal Housing Administration (FHA) has put new rules into effect this month on mortgages that it insures. Although the one-time upfront insurance premium has been cut from 2.25% of the loan amount to just 1%, the annual insurance premium paid monthly by the borrower was almost doubled, from as low as 0.5% of the loan balance to as much as 0.9%. Because FHA borrowers are required to maintain their monthly mortgage insurance for at least five years and until their loan-to-value ratio reaches 78%, the savings up front does little to compensate for the extra paid out over time. Additionally, FHA has set a minimum FICO score for its borrowers at 500, with 10% downpayment required – instead of the normal 3.5% – for borrowers with FICO scores below 580.

Full Story: http://www.nytimes.com/2010/11/28/realestate/mortgages/28Mort.html?_r=2&emc=eta1

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