1. The Upfront Mortgage Insurance Premium (UFMIP) will be increased from 1.75% to 2.25%. The UFMIP is financed into the loan, so realistically this will not be a big deal. For example, on a $300,000 base FHA loan, the UFMIP would currently be $5,250, resulting in a total FHA loan of $305,250. Assuming a 5.5% interest rate, the principal and interest payment would be $1,733. Using the new 2.25% figure, the UFMIP would be $6,750, resulting in a total FHA loan of $306,750. The payment, using a 5.5% interest rate, would be $1,741 per month. That is only a $8 payment increase. Not a big deal.
2. FHA is updating the combination of FICO scores and loan to value maximum. Currently, FHA does not have a minimum FICO score requirement for a home buyer putting the minimum 3.5% down payment down. Now, a minimum FICO score of 580 is required for 3.5% down payment. If the FICO score is lower than 580 then a down payment of 10% is required. Reality: So what. Most lenders have already instituted a minimum FICO score requirement of 620. Some won't go below 660. This change should have not effect on Orange County First Time Homebuyers. If a homebuyers score is less than 580 then they probably need to work on  their credit before buying a home anyway.
3. Seller contributions will be reduced from 6% to 3%. Reality: Not a big deal, at least for Orange County First Time Buyers. A first time buyer purchasing a home for $350,000 in Orange County, and who needed the seller to pay for closing costs, could have the seller pay as much as $21,000 under the current guidelines. That would be excessive. Under the new guidelines of 3%, the seller could pay $10,500. That would be enough to coverall closing costs (assuming 1 point Origination) and most of the prepaid expenses in most cases. Maybe in areas with lower priced homes, like Tennessee, where you can buy a home for $50,000, will be effected by this, but not Orange County.

Upfront Mortgage Insurance Premium Information