Florida FHA Changes Ahead!
This is the final week to get your FHA mortgage applications in under the current guidelines. Starting next week (April 1st officially) Florida FHA mortgage loans will cost more money. How? Well, the Federal Housing Administration decided to raise the up-front mortgage insurance premium (MIP) as well as the monthly mortgage insurance amount. FHA loans will cost an extra .75 % ($1500 on a $200k loan) in the form of the increased MIP as well as a .1% increase in monthly MIP (an extra $16.67 per month on a $200k loan).
The exact changes taking effect are:
- 10 basis point increase in annual premium for single family forward mortgages(increased from 1.15% to 1.25% annual premium)
- 25 basis point additional increase for loans above $625,500 (increased from 1.25% to a1.5% annual premium)
- Increase the upfront premium on new originations by 75 basis points (significant increase from 1% to 1.75%)
Currently, most banks’ FHA and VA loans have a minimum required score of 620 or greater. After these new changes take effect, the new minimum score required will be 640! Personally speaking, we have dozens of clients that fit into this credit score ‘window’. If your credit is marginal and you are just making the cut, NOW IS THE TIME TO ACT!
Bottom Line: Don’t wait until it’s too late. Rates are low, homes are cheap and loans are easier to qualify…so, what are you waiting for?