I understand that the government wants people to have more "skin in the game" but the changes they keep coming up with are just going to slow down any hope of a recovery in housing. The pendulum has swung from way to easy to I need your first born to get this loan done. A couple of weeks ago I posted about how VA loans which still offer 100% financing are some of the best performing loans around!!!
So now they are bringing about more changes to FHA which I will illustrate below. The change is coming to the mortgage insurance premium. Based on a 30 yr loan.
Sales price of $163,000
Minimum down payment of 3.5%
Mortgage Without the Upfront MIP= $157,295
Old MIP based off of 90 BPS= $118
Beginning on April 18th, new MIP based off of 115 BPS= $151
Those are added to a buyers new monthly mortgage insurance payment. The average sale price here in Colorado Springs is under$250,000 with our county limit at $325,000. If you have someone who is looking and going to be doing an FHA loan, better get them in ASAP!!!!
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