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FHA Changes coming our way

By Wendy Burdett

Mortgage and Lending with Prospect Mortgage NMLS #40660

February 22, 2011 09:30 PM

FHA CHANGES

For all of you who have FHA deals in early stages you will want to read this.

FHA is increasing annual MI (monthly payment)

For all case numbers assigned on or after April 18, 2011 the new monthly

mortgage insurance premium will be increasing.

The Upfront MIP is still at 100 bps, but the monthly will change as follows:

Loans > 15 years

<95.00 percent Annual is 110 bps

>95 percent Annual is 115 bps

Loans < 15 years

<90 percent Annual is 25 bps

>90 percent Annual is 50bps

Example of a $150,000 loan 4/2011

Sales price $150,000

Down Payment $ 5250

Mortgage amount without UFMIP $144750

FHA Annual MIP (monthly payment) $138.71

Example of a $150,000 prior to 4/2011

Sales Price $150,000

Down Payment $5250

Mortgage amount without UFMIP $144750

FHA annual MIP (monthly payment) $108.56

Difference is $30.15 monthly increase.

I'm sure this won't make or break a deal but thought everyone would like a heads up on these changes.

FHA is a great product for low down payments and higher debt to income rations as well.

Give me a call if I can answer any questions.

Wendy Burdett

Prospect Mortgage

1393 Grafton St

Worcester, MA 01604

(508) 380-7697

Wendy.Burdett@prospectmtg.com

www.myprospectmortgage.com/WBurdett

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Comments(7)

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Andrew Mooers | 207.532.6573

MOOERS REALTY - Houlton, ME

Northern Maine Real Estate-Aroostook County Broker

Thanks for the updates. Changes, many coming.

Feb 22, 2011 09:32 PM

Retired Notworking

Tallahassee, FL

Thanks for the reminder. I guess FHA is encouraging people to take shorter loans, which benefits them in the long run, but with such a poor economy, they may not be able to afford the higher monthly payment.

Feb 22, 2011 09:47 PM

Shannon Thomas

Selling Indy Metro, LLC - Avon, IN

Managing Broker, E-Pro, ABR,SRS, SFR

Thanks for the reminder and showing what the difference will be.

Feb 22, 2011 10:09 PM

Michele Miller ~ REALTOR®, LMC, HSE, CHS, SRES, CMRS

ERA Key Realty~Worcester County Realty Group - Worcester, MA

'Helping You Make the Best Move"

Wendy,

Thanks so much for keeping us informed of all these changes. It's never ending!

Have a great day!

Feb 23, 2011 12:29 AM

Prospect Mortgage - Worcester, MA

Mortgage Professional

One thing we know in this business is that change is constant. Keep us on our toes.

Have a great day everyone

Feb 23, 2011 03:19 AM

Conrad,

Sorry about that. I try not to use lingo but at times I get carried away. Basis points or %. It is a little more expensive, but in certain areas, we still have Mass Housing,homepath and good ol' USDA- We just have to review everything and be sure to do the right loan for the right customer.

Feb 23, 2011 09:10 AM

Suzanne Taylor

Ultima Real Estate - Corpus Christi - Corpus Christi, TX

Home Sales In Corpus Christi, TX

Wendy, it is great to have experts like yourself here on AR to help us informed. I know this does not add much to the loan amount, but every little bit counts.

Mar 05, 2011 03:15 PM

FHA Changes coming our way

Comments(7)

Wendy Burdett

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