Loans By Kathy: FHA Collections Policy Changes Delayed

FHA Collections Policy Changes Delayed

This spring there will be many changes affecting the FHA mortgage program.  As of April 9, 2012, the Upfront MIP will increase to 1.75% for loans with a 3.5% down payment; and 1.2% for loans with a 5% down payment.  The maximum loan amount is still determined by county statistics.  You can check for the limit for your county by going to the HUD website County Loan Amounts.HUD Logo


Good news for home buyers that have not made their purchase if they have a collection on their credit report.  There was to be a significant change in policy regarding outstanding collections including medical bills.  These changes will now go into effect in July.  If this applies to you, talk with your mortgage professional on how this will impact your ability to purchase a home using an FHA mortgage.

If you have any questions, please feel free to call me for your private consultation.

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Kathy Sheehan Senior Loan Officer






Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988



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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.


Comment balloon 2 commentsKathy Sheehan • April 11 2012 07:01PM


Kathy - thanks for the update and information regarding FHA. Seems like they can never bring it in on time though.

Posted by Toni Weidman, 26 Years Selling Homes in New Port Richey, FL (Sailwinds Realty) over 7 years ago

Toni, you are right, it does seem that these do hit delays on a regular basis.  The change in the collection policy is really going to prevent some for qualifying.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) over 7 years ago