More Changes to FHA.. For Better or Worse...?

Congress just passed a new bill allowing FHA to increase their monthly mortgage insurance (MI) rate for new home buyers on all FHA Loans.  The previous MI rate depending on your monthly mortgage insurance premium was either .5% or .55% which has now been raised to 1.5%    

Although FHA says that they will most likely only be charging .9% and not raising to the max, they have the capacity to charge the 1.5%, and even with the increase to .9% this will make loans more difficult for some to afford.  

Back in April I wrote how FHA had just raised its up-front premiums from the closing of the loan from 1.75% to 2.25%. 

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Continue reading article and find out more of the affects FHA has with these new changes.