Borrowers with credit scores of less than 500 must have a 90-percent LTV or less. For borrowers with three scores, the middle score is used. And for borrowers with two scores, the lowest score is used. 

9. Revised LTV requirements: New maximum LTVs, which are based on the lower of sales price or value, take effect Jan. 1. They are:

• 96.5 percent for all purchases;
• 98.28 percent for rate and term refinances (cash-out requirement remains 95 percent); and
• 98.52 percent for all streamline refinances.

As a broker, you can use information on the FHA-guideline changes to your advantage and to help your referral sources.

First, inform all your real estate agents, builders and investors about how the pertinent changes will impact transactions. Call real estate offices and ask to present these changes at their next staff meeting. Use your presentation as a way to inform, assist and build mutually beneficial relationships with potential referral sources, as well as to benefit consumers.

As always, there are great opportunities for loan originators proficient in FHA lending. Every update is a new opportunity to make a presentation to a real estate office, to meet with a builder or to contact a rehab-property investor. It also is an opportunity to strengthen current referral relationships.

You must learn FHA guidelines well, make a plan and implement that plan with focus, resolve and fortitude. Armed with the knowledge you need about FHA loans, now is the time to take yourself to the next level.

Jeff Mifsud founded Mortgage Seminars LLC in 2004. A former Federal Housing Administration (FHA) underwriter, Mifsud has been an FHA originator for more than 12 years and is the featured FHA expert for LoanToolbox.com. To train your loan officers and processors in FHA through his live Webinars or to sign up for the FHA Help Desk, visit www.mseminars.com. Reach Mifsud at jeff@mseminars.com.

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