As a reminder the new change from Department of Housing and Urban Development (HUD), the upfront mortgage insurance premiums (UFMIP) on Federal Housing Administration (FHA) loans will revert back to a flat fee, effective with case numbers assigned on or after Oct. 1 2008.
Upfront MIP factors effective with case numbers assigned on or after Oct. 1, 2008, are as follows:
- Purchases and Full Credit Qualifying Refinances = 1.75%
- Streamline Refinances = 1.50%
- FHASecure transactions = 3.00%
Sections of the Act NOT impacted:
- 223(e) Declining Markets
- 238(c) Military Impacted Areas
- 255 Home Equity Conversion Mortgages (Reverse mortgages)
- 184 ETO Native American Lending (HUD-184)
This will definitely help with borrowers who were high risk based and paid 2% plus. These changes are all part of Bush's proposed plan of The Housing and Economic Recovery Act of 2008.
If you have any further questions or comments please feel free to contact me.
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