After years of being one of the more expensive options for mortgage insurance this is welcome news. In many cases FHA will now be the less expensive option for mortgage insurance for low down payment borrowers vs conventional mortgages. The typical 3.5% down FHA loan will see the Monthly Mortgage Insurance Premium dropping from .85 to .55. (for loans under $726,200) What does that all mean in English? In my market a typical FHA borrower will likely have a $400,000 mortgage. Prior to this change the MIP would cost about $283/month and after the change it will be … (4 comments)
fha mip: HUD Rescinds FHA MIP Drop
- 01/23/17 09:12 AM
The Department of Housing and Urban Development announced it suspended the reduction of Mortgage Insurance Premiums, effective immediately.
HUD sent out an announcement just an hour after President Trump was sworn in on Friday, stating that the cuts have been suspended indefinitely.
The letter stated that the FHA will issue a subsequent Mortgagee Letter at a later date should this policy change.
“FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,” the letter stated. “As such, more analysis and research are deemed necessary to assess future adjustments while also considering potential market … (0 comments)
The MBA of America just sent out a notice that: THERE IS A STRONG CHANCE THAT WHEN DONALD TRUMP TAKES OFFICE HE MAY "ROLL BACK" THE NEWLY ANNOUNCED FHA MIP REDUCTIONS Yes you read that correctly. We don’t know if it will definitely happen – although for MBA to send out this notice it has a strong probability. We don’t know when it will happen. We don’t know how it would impact pipeline loans if it did happen. MBA feels it … (4 comments)
fha mip: Mortgage Mayhem: More FHA Changes on the way.
- 02/15/11 03:45 AM
Mortgage Mayhem: More FHA Changes on the way. Attention FHA buyers: Make note of this, you have the ability to lock in a lower payment NOW! Last week we heard from the Secretary of HUD that there would be an increase in the Monthly Mortgage Insurance premium for FHA Loans. Yesterday's Mortgagee Letter 2011-10 made it official. As of April we will have a Monthly Mortgage insurance Premium that is 25 basis points higher across the board for all FHA loans. Here is a pretty little chart that was provided in the letter:
While 25bps doesn't sound like a lot, … (2 comments)
fha mip: IMPORTANT REMINDER: FHA UFMIP changes, Get your Case Number NOW.
- 03/26/10 07:42 AM
Keep in mind that the Up Front Mortgage Insurance Premium changes on April 5th. The change will not keep anyone from being able to get a loan, it will only increase a payment by less than $6 on a $200,000 loan.. But if we can save a client a few bucks, we should! It is important to get any deals together quickly so that a case number can be assigned prior to April 5, 2010. Here is a snippet straight from HUD: Lenders should make every effort to order case numbers early in the week of March 29, 2010, since … (4 comments)
fha mip: FHA Changes: Mortgagee Letter 2010-02 MIP changes kick in 4/5/10
- 03/02/10 07:12 AM
By now we are probably well aware that the past few years has been a whirlwind of a ride for Mortgage Guidelines, both for Conventional and FHA loans. One of the recent changes in FHA is coming up soon. While this is a bit of old news it is important to note the date. The Up Front Mortgage Insurance Premium (UFMIP or MIP) is increasing. Over all this is not horrible news for the home buying public, but for your buyers that are getting close to finding a home it may be a good idea to remind them that there is … (4 comments)
fha mip: The new world of PMI: FHA SAVES THE DAY
- 05/02/09 03:54 AM
The new world of Private Mortgage Insurance. This is an update to a post a few months ago, There have been a few significant changes. Over the past few years we have seen so many changes in the mortgage world, the most obvious one is the return of PMI. We spent years doing loans with piggy back seconds cheating the system into thinking that there was 20% down. The days of the 80-10-10 are gone, and the days of the High LTV second are gone as well. PMI at one time was a simple thing. Most of us that have been … (7 comments)
fha mip: The new world of PMI, Updated April 29, 2009 (FHA saves the day)
- 04/29/09 09:50 AM
The new world of Private Mortgage Insurance. This is an update to a post a few months ago, There have been a few significant changes. Over the past few years we have seen so many changes in the mortgage world, the most obvious one is the return of PMI. We spent years doing loans with piggy back seconds cheating the system into thinking that there was 20% down. The days of the 80-10-10 are gone, and the days of the High LTV second are gone as well. PMI at one time was a simple thing. Most of us that have … (20 comments)
Over the past few years we have seen so many changes in the mortgage world, the most obvious one is the return of PMI. We spent years doing loans with piggy back seconds cheating the system into thinking that there was 20% down. The days of the 80-10-10 are gone, and the days of the High LTV second are gone as well. PMI at one time was a simple thing. Most of us that have been in the business for more than 10 years can quote you what it was for … (15 comments)
fha mip: Important FHA changes coming SOON!
- 09/24/08 03:37 AM
October 1 is a big date in the FHA world, The Down Payment assistance piece has been beaten to death on the Rain, so this is just a quick mention that if you have them, GET THEM CLOSED. The next piece is yet another change in the FHA Mortgage Insurance Premium: MIP. If you have some one buying with an FHA loan and you are close to having a contract this can be an important one to save your clients some money. In July FHA changed its MIP to a more risk based premium. The benefit here was for our … (12 comments)
fha mip: Mortgage Insurance Change (PMI) makes FHA even MORE attractive
- 07/18/08 03:07 AM
Mortgage Insurance Changes We have seen Private Mortgage Insurance rates climb. We just received an announcement that the factors for Monthly PMI (the most common form of PMI) have gone up. Why? Much like any insurance company, they do not want to pay out... since they have been paying out more in the past year they have raised rates... You see similar issues in states that have had high pay outs on home owners insurance for storm damage, Fl, LA etc.... Even in NJ Home owners insurance is higher near tidal water because of hurricane pay outs in other states. What … (5 comments)
fha mip: PMI Changes, FHA is looking even Brighter
- 07/18/08 02:59 AM
PMI Changes With the declining market and increase in foreclosures we have seen Private Mortgage Insurance rates climb. We just received an announcement that the factors for Monthly PMI (the most common form of PMI) have gone up. Why? Much like any insurance company, they do not want to pay out... since they have been paying out more in the past year with increased foreclosures they have raised rates... (ever try to get home owners insurance near tidal waters? this is a common theme too) What does this mean to your buyer? Increased payments of course. here are a few examples for … (2 comments)
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