FHA Fine Print Reduces Allowable Lender Contributions

Posted by Krista Sabol on Aug 6, 2010 in FHA, Processing, Proposed Rules, Underwriting FHA published a proposal on July 15th announcing changes to important underwriting requirements. Lenders and brokers must be aware of a problem in the fine print and respond to FHA immediately! FHA is not only changing the maximum seller contribution from 6% down to 3% they have changed the definition of ‘interested third party’ in a footnote at the bottom of page 41220. FHA’s 4155.1...
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