FHA changes home mortgage rules

Seller concessions (proposed)
Seller concessions (proposed)

The FHA is considering a move to limit seller concessions.

Old rules: Sellers could kick in up to 6 percent of the home's selling price in cash.

Proposed rules: Sellers would be limited to 3 percent in cash concessions. Anything more would have to come in the form of a price reduction on the house.

What you need to know: This "could potentially" make FHA loans more popular with sellers, Nicholas says.

This proposal is under consideration and appears likely, Bott says. Expect a decision by the end of 2010.


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