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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