HUD announced a decrease in upfront premiums and an increase in annual premiums for FHA Mortgage Insurance case numbers assigned on or after October 4.
While this will save your buyer $ upfront it will cost them on a monthly basis. Plus the upfront fee is usually financed so it did not necessarily make as big of an impact as this new monthly premium rate will.
For a buyer I am working with now, this is going to make a difference of about $90 per month on a $285,000 purchase. From my understanding, you can obtain a case # NOW as long as you have a designated property. There does not appear to be a penalty if the case number expires but check with your favorite lender to confirm.
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