FHA Mortgage Insurance Increases For Tennessee April 1, 2012

By
Mortgage and Lending with Van Dyk Mortgage NMLS:98535,Corp 3035

On April 1, 2012, FHA mortgage insurance premiums (both the upfront and monthly Premiums) will increase to replenish the FHA depleted accounts.

Although FHA  mortgage interest rates continue to remain at all-time lows, FHA mortgage fees are increasing, making the cost of buying a home or refinancing a home more expensive.  The consecutive increase in FHA mortgage insurance premiums may limit a home buyers “buying power” but protects the nations primary “low cost” mortgage program for homebuyers. 

There was a great article in the Washington Post explaining the current financial situation of FHA if you are interested in learning more – FHA Bailout

Currently, a homebuyer can qualify for a FHA mortgage in Tennessee with a 640 credit scoreas low as 640 , 3.5% down payment, and no money/assets in reserves (You can even use gift funds for your down payment).   

 

How Does The New FHA Mortgage Insurance  Affect the Homebuyer?

FHA covers the  payment “risks” by charging an upfront mortgage insurance premium fee in addition to  a monthly mortgage insurance premium.

Currently, homebuyers pay an upfront mortgage insurance amount of 1% (of the loan amount) and a monthly premium of 1.15%.

Under the new FHA increase in mortgage insurance, home buyers will pay an upfront mortgage insurance fee of 1.75% and a monthly fee of 1.25%

A comparison – Let’s look at a $200,000 mortgage

- Current FHA Upfront Mortgage Insurance Premium:  $1,930
- New FHA Upfront Mortgage Insurance Premium: $3,377

- Current FHA Monthly Mortgage Insurance Premium: $187/month
- New FHA Monthly Mortgage Insurance Premium: $205/month

AlternativesTo The New FHA Mortgage Insurance  

If your credit score is over 680, then you may be eligible for a conventional Fannie Mae mortgage which requires 5% down payment.    Considering the $200,000 home purchase, you could save approximately $63/month and eliminate the upfront mortgage insurance premium.

If you are a first-time homebuyer, I  would also recommend looking into the Tennessee USDA Home Loan Program.  This loan program offers a zero down option with a low monthly mortgage insurance premium.

Please feel free to contact me today to discuss your opitions for purchasing your new home.

 

Posted by

 

 

 

 

 

Call Today to find out about best loan for your family.

Click the Link Below to Learn about our unique Pre Approval Process 


                 

 

                    

Specializing in Government Home Loans.  FHA, VA and  USDA Rural Development

 

Alabama: License # 52935

Birmingham, Montgomery, Mobile, Huntsville, Tuscaloosa, Hoover, Dothan, Decatur, Auburn, Gadseden, Florence, Bessemer, Madison, Prichard, Phenix City, Homewood, Vestavia Hills

Georgia: License # 36362

Albany, Atlanta, Augusta, Alpharetta, Athens, Canton,  Columbus, Dalton, Dunwoody, Johns Creek, Macon, Marietta, Roswell, Sandy Springs, Savannah, Smyrna, Valdosta, Warner Robbins

Kentucky: License # MC305583

Louisville, Lexington, Bowling Green, Owensboro, Covington, Hopkinsville, Richmond, Florence, Elizabethtown, Frankfort, Paducah, Independence, Danville

Louisiana: License # 35486

Alexandria, Baton Rouge, Bossier City, Central, Denham Springs, Hammond, Houma, Kenner, Lafayette, Lake Charles, Livingston,  Marrero, Metaire, Monroe, New Iberia, New Roads New Orleans, Prairieville, Shreveport, Slidell, Walker

Tennessee:  License # 108470

Bartlett, Bristol, Chattanooga, Clarksville, Cleveland, Collierville, Columbia, Cookeville, Crossville, Fairfield Glade, Franklin, Germantown, Goodlesttsville, Hendersonville, Jackson, Jamestown, Johnson City, Karns, Kingsport, Knoxville, Memphis, Morristown, Murfreesboro, Nashville, Oakridge, Smyrna, Spring City

Texas

Abilene, Amarillo, Arlington, Austin, Beaumont, Brownsville, Carrollton, Cypress, Dallas, Denton,  El Paso,  Ft. Worth, Frisco, Garland,  Grand Prairie, Houston, Irving, Killeen,  Lubbock, McAllen, McKinney, Mesquite, Midland, Pasadena, Plano, San Antonio, Tyler, Waco, Wichita Falls

 

We offer VA Loans,  FHA Loans, USDA Loans, and more across Alabama, Louisiana, Texas and Tennessee

 

Bill McDonald NMLS # 95835

VanDyk Mortgage NMLS # 3035

 

Bill McDonald-VanDyk Mortgage

705 Gate Ln Suite 202 104

Knoxville, TN 37909

(865) 686-8711

Google Plus

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Tennessee
Tags:
fha
home loan
home buyer
usda
first time
tennessee
home purchase
1st time
mortgage

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
624,557
Brian Skaar
VanDyk Mortgage - VA, FHA, Conventional, VA Jumbo, Jumbo, Purchase Loans, & Refinance, Direct Lender - San Diego, CA
VA, Jumbo, FHA & Conv Direct Lender (760) 752-4480

Nice post, great info.   I ama big fan of FHA Loans as well, and how they can help folks buy and refinance.  As you mentioned,  Conventional loans are beoming a nice alternative in many cases.

Mar 22, 2012 12:55 AM #1
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?

Rainmaker
67,135

Bill McDonald

VA, USDA, FHA Government Loans - (865) 686-8711
Ask me a question
*
*
*
*
Spam prevention

Additional Information