FHA New Down Payment and LTV Requirements


A Special FHA Announcement from FHA Expert Jeff Mifsud


In response to the passing of HR 3221, this update announces FHA's new down payment and LTV requirements.

Here are the 5 things you need to know about these changes...

1. One single down payment requirement of 3.5% for all purchases

2. Closing costs/prepaids are in addition to the 3.5% down (6% seller contribution allowed)

3. New maximum LTVs (based on lower of sales price or value) are:

  • 96.50% for all purchases.
  • 98.28% for all regular rate and term refinances (cash out remains at 95%).
  • 98.52% for all streamline refinances.

4. These changes are effective October 1st, 2008.

5. Purchases already in the pipeline will have until December 31st to be assigned a case number. After January 1st, 2009, all purchases will require the new down payment requirements.
4 comments • Karl Peidl - Accredited Loan Consultant • September 10 2008 01:11PM