FHA Mortgage Application Fees Increase 1/2 Percent Starting Monday April 5th

By
Real Estate Agent with CONLON/Christie's International Real Estate

Get Your FHA Mortgage Application Started -- Fees Increase 1/2 Percent Starting Monday, April 5, 2010

FHA closing costs increase by 1/2 percent April 5 2010Starting Monday, April 5, 2010, getting an FHA mortgage will be more expensive for borrowers.

In new guidelines set forth earlier this year, the FHA announced plans to raise additional revenue and reduce the overall risk of its mortgage portfolio. 

The changes include the following:

  1. Increase Upfront Mortgage Insurance Premiums from 1.75% to 2.25% for everyone
  2. A plan to reduce seller concessions from 6 percent to 3 percent
  3. An increase in minimum downpayment for FICOs 580 or lower

For your own loan, to avoid being subject to higher loan costs, make sure to have your FHA Case Number assigned prior to Monday, April 5, 2010.  That means you'll want to give a full mortgage application before the weekend so your lender can register your loan in time for the deadline.

But don't leave your application to the last minute.

Friday is Good Friday so most banks will be closed. Your true FHA deadline, therefore, is Thursday April 1.

Also worth noting is that the FHA isn't done with its changes.

In its policy statement, the group also announced its plans to petition Congress to raise monthly mortgage insurance premiums.  The FHA's formal request, in summary:

  1. Raise monthly premiums by roughly 0.30%, or $25 per $100,000 borrowed per month
  2. Lower upfront mortgage insurance premiums by 1.25%, or $1,250 per $100,000 borrowed at closing

For now, the request is neither approved nor acknowledged by Congress. It's merely a request. And in the event that Congress does approves it, the FHA reserves the right to change its projections.  Either way, it means higher costs for consumers. 

The best plan, therefore, is to get your FHA mortgage into underwriting ahead of the switches because borrowing money will be harder, and more costly.

Posted by Michael LaFido on March 30, 2010 | Tags: FHA

Posted by

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Illinois
Groups:
Realtors®
The Art Of Marketing You
RE/MAX Active Rain Bloggers
The Lounge at Active Rain
Learn to be a Top Producing Listing Agent
Tags:
fha
application fees
april 5th

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
157,174
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

Hey Michael. . . Do we know for sure that the allowable Seller Concessions will definitely be reduced to 3% as of April 5th.  I'm hearing conflicting information on this.

Mar 30, 2010 06:02 AM #1
Rainmaker
817,002
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Michael - Thanks for the update.  I also wrote a post about these changes recently.  It's just something we need to be aware of moving forward.

Mar 30, 2010 07:41 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
59,885

Michael LaFido

It's Not The Market, It's The Marketing!
Thinking Of Buying Or Selling?
*
*
*
*
Spam prevention

Additional Information