FHA Major MIP Changes coming April 1st 2013

FHA Major MIP Changes coming April 1st 2013

  • FHA is increasing monthly MI by 5-10 basis points on most loan term/LTV combinations.This not to bad considering it happens every year.
  • However on terms less than or equal to 15 years  with less than or equal to 78%  LTV the MIP is changing from 0 bps to 45 bps

 

Worse the MIPs are here to stay for the life of the loan

  • Earlier the MIPs would drop off once the LTV dropped to 78% or lower as long as MIP payments were made for 5 years,in most cases.
  • Now the MIP for all loan terms will stay for a minimum of 11 years and in many cases the entire loan term.

 

What do you do

  • If the property is identified ,get a FHA case number assigned before March 31st ..Call or Email us 
  • Explore possibilities of Conventional Loans
  • If the borrower has to go FHA initially,get the borrowers to move into Conventional loans once the borrowers equity and credit position allows to do so..

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