Effective January 1, 2009 there are a few changes to the FHA loan program that are important to be aware of. According to HUD’s mortgagee letters 2008-40 and 2009-09, the following changes are happening:

New FHA Loan Limits

The FHA loan limit has decreased in Arizona,  here is a list of all FHA loan limits by county in the US. All purchases and refinances (including the FHA streamline refinance) must be under the new maximum loan limits.

FHA Down Payment Requirement

The new FHA minimum down payment requirement has changed from 3% to 3.5%.

Up Front Mortgage Insurance Premium (UFMIP) Requirements

The UFMIP requirements for regular refinances and purchases are 1.75%; FHA Streamline refinances are 1.50%

2 Appraisals Required on All FHA Cash-out Refinances Exceeding 85% Loan-to-Value

For people who are refinancing and taking cash out of their home, all FHA cash out loans exceeding 85% LTV require 2 appraisals. You can still go up to a 95% loan-to-value with FHA — for now.

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