Make sure that you are re-checking all of the pre-approval letters that were issued before the 18th on this month! Payments will be increasing by $35 to $45 per month and unfortunately some buyers who were previously qualified will no longer be qualified.
If you are unsure of the changes please read below. This should help. And if anyone has any questions please feel free to write them in the comments (just in case others are having the same questions).
New FHA Annual (monthly) MIP Increases
These changes were effective April 18, 2011 (for case numbers assigned on or after this date)
The Upfront Mortgage Insurance remains at 1.00%.
The Annual Insurance Premium will increase from .90% to 1.15% for LTV's greater than 95% on 30 yr loans.
The Annual Insurance Premium will increase from .85% to 1.10% for LTV's less than or equal to 95% on 30 yr loans.
The Annual Insurance Premium will increase from .25% to .50% for LTV's greater than 90% on 15 yr loans.
The Annual Insurance Premium will increase from 0% to .25% for LTV's less than or equal to 90% on 15 yr loans.
To read Mortgagee Letter 11-10 in its entirety, click here. In other words: on a $100,000 FHA 30 year fixed this equals a $21 higher monthly payment for homebuyers. Please call or email us for more information.
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