URGENT: FHA MIP Increase Alert

April Fools?! FHA MIP (Mortgage Insurance) Increase Alert

Please read below and act immediately to lock in your low, fixed FHA mortgage

Florida home buyers, this is your warning!  There is an immediate change coming to the market.  The FHA Mortgage Insurance Premium (MIP) will increase for all mortgage applications completed after April 1, 2012.   This FHA MIP increase will affect BOTH the monthly premium amount as well as the annual premium.

What does this mean?  Simply put, your Florida FHA loan will cost more on a monthly and up-front basis if you wait until after April 1, 2012 to apply for an FHA mortgage.  Lock in your low FHA mortgage by applying online with an Orlando Mortgage Broker:

How much will it increase?  The April 1, 2012 FHA MIP monthly and annual increases are as follows:

  • 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 a 1.5% annual premium)
  • Increase the upfront premium on new originations by 75 basis points (significant increase from 1% to 1.75%)

Upcoming FHA Policy Changes

Revised Seller Concession Policy

Last Thursday, HUD published a request for comments (due in 30 days, by March 26) on their revised changes to FHA policies on seller concessions. Some of you may recall that HUD had initially proposed the reduction of seller concessions from the current 6% to 3% bak on July 15, 2010. The new proposal is as follows:

 

  • Reduction of seller concessions to 3% OR $6,000, whichever is greater.
  • Acceptable closing costs allowed to be paid by seller concessions: closing costs, prepaid items, discount points, up-front MIP, and any interest rate buy down
  • Changes the definition of “interested third party” by adding lender, mortgage broker and settlement company to the list.

 

 

 

Posted in:
About the Author

Jason Gonzalez

Jason is a lifelong student of the mortgage industry that prides himself on his innovative ability to consistently find the best deals for his clients. With well over a decade of industry knowledge and experience, you can trust that he will help guide you in the right direction for your home financing needs. What separates Jason from everyone else is the fact that he cares so much about the people he helps, driving him to go above and beyond to make the dream of homeownership possible for all.