FHA UPDATE: Significant Reduction in Mortgage insurance

Mortgage and Lending with CMG Home Loans NMLS 248937


FHA Loans Just got MUCH more affordable


After years of being one of the more expensive options for mortgage insurance this is welcome news.  In many cases FHA will now be the less expensive option for mortgage insurance for low down payment borrowers vs conventional mortgages.

The typical 3.5% down FHA loan will  see the Monthly Mortgage Insurance Premium dropping from .85 to .55. (for loans under $726,200)

What does that all mean in English?

In my market a typical FHA borrower will likely have a $400,000 mortgage.   Prior to this change the MIP would cost about $283/month and after the change it will be about $183/month - A WHOPPING $100 less per month!

The FHFA that oversees the agencies has made it a mission to make homes more affordable for all. We can see that in recent changes to Conventional LLPAs where rates are improving for low down payment and lower credit score borrowers.

The FHFA's mission is to support home ownership and this is a clear signal that they will continue to do that

While the Mortgagee Letter says this is Effective 3/20/23 we are allowing the change to all our FHA loans that have not closed and Funded yet. So this is available immediately


Please keep me in mind if you are looking for a Mortgage in NJ, I'd be happy to discuss options with you. I can also help guide you in Most other states for a mortgage or an Equity Loan as well; ( Everywhere but UT) 

Give me a call.

Robert Rauf 
Mortgage Loan Originator NMLS# 248937
or my blog: http://activerain.com/blogs/rrauf 
Office: (732)908-4868  Cell (732)740-0175 


Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com or www.RobertRauf.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, 

Comments (4)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Robert and thank you for sharing this great information with us here in the Rain.  Make it a great day!


Feb 28, 2023 09:14 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Robert, this is great information for buyers needing to go FHA!

Feb 28, 2023 09:25 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Joan Cox It really is a significant change.  I have avoided FHA for years because of the very expensive MIP... Now we have more viable options to keep payments low!!

Feb 28, 2023 10:10 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Will Hamm I heard it is your birthday..   Happy Birthday.

Feb 28, 2023 10:10 AM