On April 5th the UMIP (up-front Mortgage Insurance Premium) for FHA loan will increase from 1.75% to 2.25%. Also a decrease in allowable seller's contributions from 6% down to 3%. Okay so this all sounds like more doom and gloom, but it's not the increased UMIP really doesn't translate to a large increase in monthly payment, and the monthly premium is still the same. We just need to remember these changes when we speak with our clients, and know that our industry is evolving and we really can't stop it, so what we can and must do is remain aware of the changes and keep providing our clients with the best service possible. This is why they choose to work with us, it's what they expect, and it's what we must deliver.

On another note, if your client is putting down a larger down payment and does not need FHA financing (meaning 5% or more and they qualify conventionally) make sure to compare the cost of a single paid MI plan. You may be surprised to find that the cost may be reasonable enough that it could be negotiated to be paid by the seller, and the monthly payment for the buyer would be lower since there would no longer be a monthly MI consideration.