Many home buyers are going for FHA loans vs. conventional loans recently. In fact, over the past six months FHA lending has doubled!

Major changes are happening in FHA. The big difference will be in the insurance premiums and interest rates for the loans. If you are a high risk borrower your premiums will be higher and your interest rate higher. This of course is based on your FICO score (credit score). If you have a good FICO score you will pay a lower premium (currently 1.5% of the loan which is rolled into your total loan package)

Low FICO score will pay 2.25% fee

High FICO score could pay 1.25% fee.

Depending on your downpayment and FICO scores there are many variables with rates and fees. So, game has changed again. This is significant because the FHA program has been the same for nearly 75 years. This model is more in line withthe similar  PMI (private mortgage insurance.

In any case, look for new FHA rates to appear on the horizon. These changes will start this summer.