fha mortgagee letter: Beware of FHA Changes
- 04/17/11 02:46 AM
FHA Announced that they will be changing their Mortgage Insurance Premiums AGAIN, effective April 18, 2011. FHA does not underwrite mortgages - they insure them against default, just like Private Mortgage Insurance Companies. Because of this, they determine their own guidelines for underwriting the file, and they set their own rates. There are currently two types of Mortgage Insurance or PMI associated with every FHA loan we make. Up Front Mortgage Insurance Premium (sometimes referred to as UFMIP): The current rate on this premium is currently 1 percent of the loan amount. At THIS TIME, if you sell the property or (4 comments)