FHA changing regulations on files opened after April 1

The Federal Housing Administration is making some changes to its loan programs that could impact Colorado homebuyers and homeowners who want to refinance with an FHA loan. It’s important for Colorado mortgage brokers and real estate agents to know about the changes, which will impact any FHA case numbers assigned after April 1.

Home Equity Conversion Mortgages
Starting April 1, FHA is consolidating its standard fixed-rate home equity conversion mortgage and its Saver fixed-rate HECM into one. While the standard option is the most popular, it’s putting stress on the FHA insurance fund. For long-term sustainability, the saver option will be the only one available.

Mortgage insurance premiums
The FHA will raise premiums on new mortgages to by 10 basis points or by 0.10 percent. On jumbo loans, the rates will increase 0.05 percent.

Jumbo down payment
The FHA is also increased the required down payment on loans greater than $625,000 from 3.5 percent to 5 percent.

See HUD memo No. 13-010