FHA MORTGAGE ALERT CHANGES

MORTGAGE ALERT!

Please note that effective with all new FHA loans (defined as new Case number assignments) on/after July 14th, HUD is implementing new “risk based premiums” on both the up-front and monthly mortgage insurance. The chart is based upon FICO scores and Loan-to-Value (LTV).

In some cases the up-front premium is actually lower and in most typical cases the monthly premium is slightly higher. As a comparison, currently the typical 3% down, 30-year loan carries an up-front premium of 1.50% and monthly premium on .50% (150/50).

Please be aware that these changes will affect both the final loan amount AND the monthly payment.

If you are working with a buyer that might be negatively affected by these changes, get them in process before July 14th!

There are other key points addressed in the FHA announcement.

For detailed guides click on the link below.

FHA CHANGE GUIDELINES

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