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HUD has placed a one year moratorium on their risk based pricing effective with case numbers ordered on or after October 1, 2008. Consequently, effective with new FHA case number assignments on or after that date, FHA will no longer base its mortgage insurance premiums on a combination of credit bureau score and loan-to-value. The upfront and annual premiums for mortgages for which new case number assignments are made on or after October 1, 2008 are as follows:
The upfront premium for purchase money and full credit qualifying refinances is 1.75%.
The annual premium ( Monthly MMI ) for LTV's equal or less than 95% with terms greater than 15 years is .50.
The annual premium ( Monthly MMI )for LTV's greater than 95% with a term greater than 15 years is .55.
The annual premium ( Monthly MMI ) for LTV's equal to or less than 90% with a term less than 15 years is NONE.
The annual premium ( Monthly MMI ) for LTV's less than 90% and a term greater than 15 years is .25.
Loans with case number assignments made between 07-14-08 and 09-30-08 will continue to be subject to risk based pricing.
Please call your local FHA specialist for questions.
Best Regards,
Wayne
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