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..

Direct Lender Mortgage Bank Serving Realtors,Buyers & Homeowners