NEWS FLASH: FHA changing MIP / PMI requirements effective July 14, 2008
This information is very important for writing FHA purchase agreements and when speaking to buyers. We suggest you print out and save the graphs below and pass this along to others.
FHA, as with many other lending options is switching to new RISK BASED PRICING. Risk-based premiums enable FHA to respond to changes in the market, like the recent implosion of subprime lending, by reaching out to higher-risk borrowers without having to raise premiums for all borrowers. Borrowers are better off, even with higher mortgage insurance premiums, because FHA insurance gives borrowers access to substantially lower interest rates than are charged for subprime loans, thereby lowering borrowers' overall borrowing costs.
Many of FHA's lower-income borrowers have FICO scores above 680 and would qualify for premium reductions relative to today's premium levels. In fact, as a result of the predominantly low- and moderate-income character of FHA borrowers, a larger number of low-income borrowers would benefit from premium reductions than would moderate-, middle-, and upper-income borrowers combined.
The first number is the UP-FRONT MIP. The second number is the monthly PMI
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FHA Single Family Mortgage Insurance
Upfront and Annual Mortgage Insurance Premiums
(Loan Terms > 15 years)
Effective as of July 14, 2008
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All premiums are specified in basis points (0.01%)
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Decision Credit Score (FICO)
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|
LTV
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850-680
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679-640
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639-600
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599-560
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559-500
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499-300
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NON-TRADITIONAL
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≤ 90.00
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125/50
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125/50
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125/50
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150/50
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175/50
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175/50
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150/50
|
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90.01-95.00
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125/50
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125/50
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150/50
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175/50
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200/50
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n/a
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175/50
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> 95
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125/55
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150/55
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175/55
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200/55
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225a/55
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n/a
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200/55
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- a. A first-time homebuyer, with HUD-approved counseling, will pay only 200 basis points for the upfront mortgage insurance premiums.
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Call Joe Metzler for all your MINNESOTA FHA deals at (651) 552-3681
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FHA Single Family Mortgage Insurance
Upfront Mortgage and Annual Mortgage Insurance Premiums
Loan Terms of 15 Years or Fewer
Effective as of July 14, 2008
|
|
All premiums are specified in basis points (0.01%)
|
|
Decision Credit Score (FICO)
|
|
LTV
|
850-680
|
679-640
|
639-600
|
599-560
|
559-500
|
499-300
|
NON-TRADITIONAL
|
|
≤ 90.00
|
100/0
|
100/0
|
125/0
|
150/0
|
175/0
|
175/0
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150/0
|
|
90.01-95.00
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100/25
|
125/25
|
150/25
|
175/25
|
200/25
|
n/a
|
175/25
|
|
> 95
|
125/25
|
150/25
|
175/25
|
200/25
|
200/25
|
n/a
|
200/25
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Need all the details?
For easy reading, start at page 26.... http://portal.hud.gov/pls/portal/docs/PAGE/FHA/IMAGE_LIBRARY/5171-N-02%20RBP%20FINNTC%20TO%20PUBLISH%20%205-13-08%20.PDF
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