Changes to FHA Mortgage Insurance Premiums
HUD just released a new mortgagee letter with the specifics to the changes in the Upfront Mortgage Insurance Premium and the Monthly Mortgage Insurance Premium for FHA loans. Here is the link to read it in its entirety http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-28ml.pdf
The Upfront Mortgage Insurance premium decreased from 2.25% down to 1% and the Monthly Mortgage Insurance Premium increased from .55% to .90% on loan to values above 95% (less than 5% down) and from .50% to .85% on loan to values less than or equal to 90% (5% or more down) if you are getting a 30 year fixed loan.
This will make it more costly for the borrower so now is the time to buy to avoid these changes. You just have to be under contract prior to October 4, 2010 so that we can get an FHA Case Number for you.