FHA Monthly Insurance Premium (MIP) Will Be Reduced To .55/.60

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut NMLS #65149

FHA announced today that effective on January 27, 2017, the FHA Monthly Insurance Premium (MIP) Will Be Reduced To .55/.60.  MIP factors for LTV's 95% or less will be reduced to .55, and the MIP factors for LTV's greater than 95.01% will be reduced to .60.  This is very encouraging news in the continuing effort to achieve a full Housing Market recovery.  This reduction in the MIP is also only the 3rd time in the history of the FHA they have reduced the MIP.

Below is a chart with the new MIP factors based on loan size, and Loan-To-Value (LTV).

 

 

The reduction of the MIP is a major step in the right direction by FHA to make home ownership, and achieving the American Dream a possibility for many again.  Yes FHA has still retained the life time provision on the MIP for loans with an LTV of 95.01% or higher, but by reducing the MIP by .25 Bases Points (BPS), FHA has made the MIP far less than the PMI on conventional loans with the same LTV and credit score.

By reducing the MIP factors to .55/.60 FHA should once again become a go to loan product, especially for first time homebuyers.  Hopefully this is a sign FHA will be considering further changes in the near future.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 01/18/2017 11:45 PM
Topic:
Mortgage / Finance
Location:
Connecticut
Groups:
Realtors®
What is New in Loan Products
1st Time Buyers
The FHA Mortgage Group
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Tags:
fha mortgage insurance premium mip

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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise in NE Philadelphia & Bucks County

Great news George Souto  for buyers looking for FHA financing  . We can always count on you to keep us informed on all the important mortgage  information

Jan 09, 2017 01:48 PM #2
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Having a government agency reduce a fee is really good for the mortgage holders that have to pay PMI

Jan 09, 2017 04:07 PM #3
Rainmaker
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John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

George Souto Thanks for the latest FHA update on MIP reduction.

Jan 09, 2017 04:14 PM #4
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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Specialist

George, This is great news. I first learned about it from my lending partner, Tom. 

Jan 09, 2017 05:14 PM #5
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Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
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Thanks for providing updated information to us this week. always appreciated

Jan 09, 2017 06:28 PM #6
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi George - I really hope that this is the sign of more to come and that Connecticut gets a recovery.

Jan 09, 2017 07:01 PM #7
Rainmaker
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Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

George -- thanks for the heads up.  Home buyers will be wanting to take advantage of these changes.  

Jan 09, 2017 07:42 PM #8
Rainmaker
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Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George great post and a great direction we are heading as to making home ownership a reality for many, Endre

Jan 09, 2017 09:17 PM #9
Rainmaker
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Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

Yaaah !   Dreams really do come true...even when they are "government inspired" !   Valuable information !

Jan 10, 2017 03:13 AM #10
Rainmaker
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Kat Palmiotti
Better Homes & Gardens Rand Realty, Monroe NY Real Estate, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

That sounds like great news - and it is a decent sized reduction.

Jan 10, 2017 03:55 AM #11
Rainer
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Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

Thanks for sharing!!!

The reduction of the MIP is a major step in the right direction by FHA to make home ownership, and achieving the American Dream a possibility for many again. 

Jan 10, 2017 04:34 AM #12
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning George.  This is good news and thanks for spreading the word.

Jan 10, 2017 05:08 AM #13
Rainmaker
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Patricia Feager
Dallas Premier Keller Williams Realty - Flower Mound, TX
Selling Homes Changing Lives

Alleluia! Many consumers will benefit because of this change. It was long overdue.

Thank you for sharing the news! 

Jan 10, 2017 05:11 AM #14
Rainer
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Chris Lima
Keller Williams Realty-Treasure Coast - Port St Lucie, FL
Local or Global-Allow me to open doors for you.

This is great news, George.  Thank you.

Jan 10, 2017 06:27 AM #15
Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I'm for anything that puts more money in anyones pocket....

Jan 10, 2017 07:50 AM #16
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi George

Thanks, as always, for keeping us informed on the the historical FHA changes. Great news for those who are getting FHA financing.

Jeff

Jan 10, 2017 07:52 AM #17
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Mike Bjork
American Pacific Mortgage - Redondo Beach, CA

I really like how it helps the High Balance Loans, as they nearly dropped in half (from 105bps to 60bps).

Jan 10, 2017 09:04 AM #18
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Debe Maxwell
www.AtHomesCharlotte.com | The Maxwell House Group - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

This is such good news for FHA buyers!  Thanks for keeping us informed, George Souto!

Jan 10, 2017 10:48 PM #19
Rainmaker
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Rob Spinosa
RPM Mortgage, Marin County, CA - Mill Valley, CA
Executive Loan Advisor, Marin Mortgage Broker

Just a couple of days in and we've already had this be a positive factor on a buyer's deal.  This is great news all the way around.

Jan 11, 2017 05:28 AM #20
Rainmaker
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Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

George, I had heard this and very encouraged this FHA product will work better for first time home buyers!

Jan 12, 2017 04:09 AM #21
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