If you are planning on purchasing a home and need an FHA loan it would be in your best interest to buy sooner rather than later or it may cost you more.
HUD announced last night it will increase FHA single- family mortgage insurance
premiums ( MIP) to improve the FHA insurance fund's capital position and
encourage private capital to return to the home mortgage market. Under the
increases, the FHA annual MIP will increase by 0.10 percent for loans under
$625,500 and by 0.35 percent for loans above that amount. Upfront premiums
(UFMIP) will increase by .075 percent for all loans (1.75% from the current 1%).
HUD says it will publish a mortgagee letter soon with additional details.
* The 0.10 percent MIP increases will be effective on all loans with case numbers assigned on or about April 1, 2012.
* The additional 0.25 percent for mortgages exceeding $625,500 will be effective assigned on or after June 1,2012
* The UFMIP increase will be effective for case numbers assigned on or after April 1, 2102.
FHA estimates that the UFMIP increase will cost new borrowers an average $5 more per month, based on a borrowers ability to include the increase in the balance of the new FHA loan. Taken together, these premium changes will increase FHA's revenue more than $1 billion through Fiscal Year 2013.
Note: A case number can't be ordered until loan documents & a signed application is received from a buyer. HUD is closely monitoring this requirement to ensure case number assignments are not being ordered to locked down guideline changes.
If you need assistance buying a home or have questions on getting preaaproved for a loan feel free to contact me.
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