The Federal Housing Administration (FHA) announced several important changes last week that will help ensure it’s long-term financial soundness.  The biggest change is that they will raise the minimum down payment for its least credit-worthy borrowers.

In an effort to increase the agency’s finances, borrowers with a credit score below 580 will be required to put down at least 10%.  Those with a score above 580 will still be able to put down the current 3.5%.

Additionally, the FHA has increased the upfront mortgage insurance premium from 1.75% to 2.25%.  The agency is also expected to seek congressional approval to raise annual mortgage insurance premiums above the current .55% maximum over the life of the loan.

To see the rest of the FHA changes, visit REALTOR.org.

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