Monday, January 12, 2015

FHA Lowering Mortgage Insurance Premiums


The Federal Housing Administration (FHA) will be lowering its annual insurance premiums, which it charges to guarantee mortgages, from 1.35% to only 0.85% for all FHA loans with a term greater than 15 years! This decision was designed to bring more first-time homebuyers into the housing market. Lowering the premiums on FHA loans will not only make FHA loans more attractive, but will make home ownership more affordable for many.  

These changes are effective for case numbers assigned on or after January 26, 2015. In addition, FHA will temporarily approve cancellation requests for active FHA Case Numbers within 30 days of the effective date. This does not include single family, streamline refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009, as these premiums were already reduced.

HUD MIP CHANGES
Current MIP 
New MIP 
 
           Term > 15 Years
Loan Amounts ≤  $625,500
 
≤95% LTV
1.30% 
0.80% 
>95% LTV
1.35% 
0.85% 
Loan Amounts > 625,500    
≤95% LTV
1.50% 
1.00% 
>95% LTV
1.55% 
1.05% 

  No Change on Terms ≤15 Years

Coupled with On Q Financial, Inc.'s low and NO FICO FHA options, getting a mortgage may be more affordable than ever. Please contact us directly at http://www.wilmingtonhousehunter.com/about/ if you have any questions regarding how these new changes can benefit you.
 
 
 
 


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