FHA has announced that beginning with case number (application) assignments on or after Oct. 4. FHA monthly mortgage insurance premiums will rise to .90 basis points.
This change also includes a decrease in the upfront financed mortgage insurance premium to 100 basis points down from 2.25 basis points currently in place. If you are going to use the FHA to purchase or refinance a home you wanted to get your application in before Oct. 4 and have your case number pulled at that time.
How much more this will cost the borrower is described in the following scenario. With a base loan amount of 200,000 under the new MI rules the borrower will pay about &56.00 per month than under the old rules.
FHA loans are available through HUD approved mortgage lenders in your area. These loans require a lower down payment than conventional loans and allow for past credit challenges that have been resolved.
As the mortgage credit markets have shrunk and financing has been harder to obtain the FHA loan program has captured a large share of the home financing markets and have provided home ownership opportunities for countless home buyers. If you are in the market for a home loan including a refinance the FHA loan program may be right for you. Contact your local HUD approved lender for details.