![]() ![]() They should also help to boost the economy by encouraging more people to buy homes. These changes are welcome news for low- and moderate-income borrowers, who have been struggling to afford homes in today’s heated housing market. And it will reduce the minimum down payment requirement from 3.5 percent to 3 percent. The HUD will also increase the amount that it allows borrowers to borrow without requiring them to purchase mortgage insurance. This change is intended to make it easier for borrowers to purchase homes in areas where prices have been rising rapidly. The most significant change is that the HUD will allow borrowers to use a property’s estimated market value, rather than the appraised value, to qualify for a loan. The appraisal guidelines for FHA loans are more strict than for other types of mortgages where a minimum 620 or 640 FICO score is required. The new guidelines are designed to increase the number of low and moderate-income borrowers who have a lower credit score and cannot qualify for a conventional mortgage. Changes to the FHA Appraisal Guidelines in 2024 It’s important to consult with a mortgage lender to find out which guidelines apply to your specific situation. The FHA appraisal guidelines are just one part of the mortgage process and real estate. This policy was added to protect borrowers from being approved for a loan they cannot afford. For example, in January 2013, the FHA announced a new policy that requires mortgage lenders to verify a borrower’s income and employment before issuing an FHA loan. The FHA appraisal guidelines are updated periodically to reflect changes in the housing market.
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