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An FHA loan costs a little more now

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Real Estate Agent with RE/MAX United
Last week FHA mortgage insurance premiums increased for all loans processed after April 18th
  
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FHA loan borrowers who are putting less than 5% down will have a monthly mortgage insurance premium of 1.15%
  
FHA borrowers who are putting 5% or more down will have a 1.10% factor for mortgage insurance.
  
Calculated for less than 5% :
Purchase Price  $200,000 - Down Payment $7,000 (3.5%) = Base Loan Amount $193,000
Up front Mortgage Insurance Premium $1930.00 ( 1.00% - Which is financed) Total Loan Amount $194930.
Monthly Mortgage Insurance = $193000 x 1.15% = $2220 divided by 12 = $184.96 per month
    
 
Calculated for 5% down payment:
 
Purchase Price $200,000 - Down Payment $10,000(5%) = Base Loan Amount $190,000
Up front Mortgage Insurance Premium $1900.00 ( 1.00% - Which is financed) Total Loan Amount $191900.
Monthly Mortgage Insurance = $190,000 x 1.10% = $2090.00 divided by 12 = $174.17 per month   
 
Even though many condo projects in the San Diego area are not approved for FHA financing due to delinquency rates and owner occupancy rates, there are still many properties out there that can be FHA financed. 
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* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * For your Real Estate needs in North San Diego or Southwest Riverside County........ Make the Call to Hankins and HallLela 760-591-0020 DRE#01407710 Steve 760-809-1637 DRE#01764446 Lela Hankins and Steve Hall are full time real estate professionals providing full service in real estate to Carlsbad, Encinitas, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido,Fallbrook, Bonsall, Rancho Bernardo, Valley Center, Temecula, Red Hawk, and Murrieta Find us online at LelaSellsSanDiego.com
Show All Comments
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

I wonder if that is a sign that our economy is improving...

Apr 26, 2011 11:16 AM
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy and evening to you Steve

Steve, sounds like the big boss are wanting to have a party, they want a big bonus.

Have a good one
Dale in New Hampshire

Apr 26, 2011 12:23 PM
Not a real person
San Diego, CA

Personally I think we’d have a much more stable real estate market if everyone – no exceptions – was required to put 10% down on their homes, and that 10% would always be there – no exceptions – until they sold their homes. No refinancing at 100% or taking that 10% out via a HELOC or other such maneuvers.

Apr 30, 2011 12:33 AM
Steve Hall
RE/MAX United - San Marcos, CA
Make the Call to Hankins and Hall

Russel - That 10% would still have been gone for everyone that bought in the mid 2000's.  To get a loan in today's environment, you actually have to show income to qualify.  I suspect that we will never see the lending industry loosen up the way it was in the past.  That is unless we forget what happened, which we tend to do.

Thanks for stoppin' by

May 01, 2011 01:44 PM
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