I am sure all of you have heard about the PMI changes for FHA.Well it is now here and will go into effect as of July 14, 2008. Please keep in mind the FHA Program is still a very good option for those customers who are not able to qualify for the other Programs, they can fall back on the FHA Loan.
Please also keep in mind to check with your particular investor to see what is their guideline to do a manual under written loan . Some Investors have raised the Credit Score to 600 before they will entertain reviewing a loan that is a refer. Some are 580 and there are still a couple of Investors that do not require a specific credit score. Again, with all the changes, make sure that your lender knows the guidelines. This is critical for everyone involved.
I hope you find this information Helpful. Have a wonderful day !
Eric Meruelo
OakStar Bank
Springfield, MO
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New Upfront and Annual Mortgage Insurance Premiums (Loan Terms GREATER THAN 15 years) Effective as of July 14, 2008 |
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Decision Credit Score (FICO) |
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850-680 |
679-640
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639-600 |
599-560 |
559-500 |
499-300 |
NON-TRADITIONAL |
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LTV |
Upfront/Monthly |
Upfront/Monthly |
Upfront/Monthly |
Upfront/Monthly |
Upfront/Monthly |
Upfront/Monthly |
Upfront/Monthly |
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≤ 90.00 |
1.25%/.50% |
1.25%/.50% |
1.25%/.50% |
1.50%/.50% |
1.75%/.50% |
1.75%/.50% |
1.50%/.50% |
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90.01-95.00 |
1.25%/.50% |
1.25%/.50% |
1.50%/.50% |
1.75%/.50% |
2.00%/.50% |
n/a |
1.75%/.50% |
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> 95 |
1.25%/.55% |
1.50%/.55% |
1.75%/.55% |
2.00%/.55% |
2.25%a/.55% |
n/a |
2.00%/.55% |
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a. A first-time homebuyer, with HUD-approved counseling, will pay only 2.00% for the upfront mortgage insurance premiums. |
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