FHA Loans are Changing Soon, April 1st and April 9th

Mortgage and Lending with www.DaveYourMortgageGuy.com - Legend Lending NMLS #293883

There are 3 major changes that are going to be going go into effect very soon for FHA loans.  FHA loans are known for being very helpful for homebuyers.  They offer lower than market rates, low down payment of 3.5% and allow the seller to pay more of the buyers closing costs than conventional loans.   Here are the 3 Major changes you need to know:


1.      Monthly Mortgage Insurance is increasing.  For all FHA loans on and after April 9th.   The mortgage insurance is increasing by .10 and here is a quick explanation of the change:

     30yr Mortgage(20 yr, etc)

     LTV: 95% +    Mortgage Insurance: 1.25

     LTV:95% and under. Mortgage Insurance: 1.20

     15yr Mortgage

     LTV:90%+   Mortgage Insurance: .60

     LTV: 90% and under.   Mortgage Insurance: .35

And don’t forget any FHA 15yr mortgage with a Loan to Value of 78% and less has no       mortgage insurance.  This increase of .10 to the monthly mortgage(30yr) would crease the payment of a $200k loan by $17 a month

2.      HUD is also increasing the upfront mortgage insurance amount from 1% to 1.75%.  This fee is actually financed into your loan.  To give this change some perspective, the increase in up front mortgage Insurance will increase the payment on a $200k loan by $5 a month.

3.      HUD just announced that on all FHA loans started  on April 1st and after, borrowers must have collections paid off(total balance over $1000).   This is a major announcement that sort of fell under the radar.   But has major ramifications.  What does this mean?  If the borrower has a total of $1000 in collection balances then they must be paid off or proof the borrower has been in a payment plan for 3mths.  This would mean a total of $1000 or more.  Not just one account with a $1000 collection balance.



These are major changes that every homebuyer should to be aware of.  And hopefully can find a home before these changes go into effect. 


The FHA Collection Rule has been DELAYED until July 1st. GREAT NEWS!!!!



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David Krichmar 

Mortgage Banker NMLS#293883 

Legend Home Lending

LLC NMLS #229421

Has Written For Realtor Magazine, Houston Agent Magazine, Scotsman Mortgage Guide

Appeared On Fox Business


Named 5 Star Mortgage Professional 2013, 2014, 2015, 2016, 2017

Named Top Mortgage Professional 2010,2011




For More Mortgage Info Follow me at  Dave's Blog


If you are looking for a FHA, VA, USDA, Homepath, Conventional, Jumbo, Construction, FHA 203k mortgage in Fort Bend County, Sugar Land, Houston, Katy, Harris County, Brazoria County, Pearland, Richmond, Bellaire, West University, The Woodlands, Kingwood, Friendswood, Clear Lake, Galveston, Fulshear, Tomball, Spring, Conroe, Montgomery County or anywhere in Texas I am your GUY!  


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Brian Sharkey
SharkeyRE LLC - Port St Lucie, FL
SharkeyRE - #SouthFloridaBroker

Happy St. Patricks Day!  Thanks for sharing your blog info.  Sharkey

Mar 17, 2012 09:54 AM #1
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Evening David

Thanks for the FHA update. Have a great day

Mar 17, 2012 10:44 AM #2
David Krichmar
www.DaveYourMortgageGuy.com - Legend Lending - Sugar Land, TX

Thanks Sharkey and Patrick. 

Mar 17, 2012 11:57 PM #3
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