The FHA announced a tightening of its mortgage underwriting rules in late January of 2010. The policy changes are designed to shore up the FHA's capital reserves and help the agency do a better job of managing risk.
Some of the changes:
- mortgage insurance premiums going up from 1.75% to 2.25%
- increases minimum down-payment to 10% for low credit scores (580 or less)
- reduces permissible seller concessions from 6% down to 3%
First time home buyers may be affected (those who have not yet established their credit history, for example).
For the entire article, see the following link from REALTOR.org