Anyone interested in acquiring an FHA loan should be aware of several changes to FHA loan requirements now in effect.

One of the most important changes to FHA loan requirements is the credit scores. New FHA borrowers must have a minimum credit score of 580 to qualify for the FHA’s most favorable down payment plan, currently at 3.5%. Borrowers with credit scores of less than a 580 FICO score will be required to put at least 10% down. It’s important to understand that having a credit score of less than 580 does NOT disqualify applicants from getting an FHA loan, but the down payment requirements are stricter under the announced guidelines.

Up Front Mortgage Insurance premiums have increased to 2.25% for all FHA case numbers assigned after April 5th, 2010 for purchase money mortgages, plus the FHA’s Streamline Refinance program and full-credit qualifying refinances.

Seller concessions have also changed. The FHA has lowered seller concessions from 6% to 3% in a move FHA officials say is designed to eliminate the temptation to inflate the appraised value of a home for sale.