Good afternoon.
I am providing you with this information so you are aware of the upcoming changes to FHA mortgage insurance premiums.
FHA loans require 2 types of mortgage insurance. Upfront mortgage insurance and annual mortgage insurance. In today's environment the upfront insurance is based on a set factor of 1.50% of the loan amount and is financed into the loan. The annual mortgage insurance is based at .50% of the loan amount and is included in the borrower's monthly payment.
Effective July 14, 2008 FHA will use the following criteria to determine upfront & annual mortgage insurance premiums:
|
|
FICO |
||||||
|
LTV |
850-680 |
679-640 |
639-600 |
599-560 |
559-500 |
499-300 |
NON-Traditional Credit |
|
< 90.00% |
1.25% & .50% |
1.25% & .50% |
1.25% & .50% |
1.50% & .50% |
1.75% & .50% |
1.75% & .50% |
1.50% & .50% |
|
90.01%-95.00% |
1.25% & .50% |
1.25% & .50% |
1.50% & .50% |
1.75% & .50% |
2.00% & .50% |
N/A |
1.75% & .50% |
|
> 95.00% |
1.25% & .50% |
1.50% & .55% |
1.75% & .55% |
2.00% & .55% |
2.25% & .55% |
N/A |
2.00% & .55% |
Note: The first number listed is the upfront mortgage insurance percentage and the second number is the annual mortgage insurance percentage.
First time home buyers obtaining a mortgage with an LTV greater than 95% and a FICO score between 559-500 are entitled to a reduction of their upfront mortgage insurance premium from 2.25% to 2.00% provided the homebuyer completes HUD approved pre-purchase counseling. Contact me for more information on counseling class availability and requirements.
As more weight is placed on FICO scores it is imperative to work with a lender that can offer the best credit analysis and has the tools readily available to obtain the best loan program for the buyer. I offer these services and have the experience to ensure that we identify credit issues and create a plan to address them as quickly and accurately as possible.
Please contact me if you have any questions regarding these changes or any other FHA questions. I look forward to hearing from you.
Aerick Squier
Branch Manager
Hamilton Lending
Office: 602-957-8900
Toll Free: 866-957-8989
E-Fax: 602-680-2960
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