The Federal Housing Administration (FHA) just announced that it will be hiking premiums on new mortgages by 10 basis points, or .1% which could add $13 a month to an average borrower’s mortgage payments.
Here are the other highlights:
– Jumbo loans of $625,000+ will see premiums increase by 5 basis points or .05% and down payment requirements will go from 3.5% to 5%
– Will require insurance premiums to be paid for the life of the loan where down payments are less than 10%.
– Requirements for those borrowers with less than a 620 credit score or a total debt to income ratio above 43% will have to have larger down payments or more reserves to justify loan approval.