FHA Mortgage Insurance Premium Change

Here is just another reason to buy now as it’s going to continue to get more costly to buy a home especially the way home values are increasing in the Fort Lauderdale and South Florida area.

There are two key changes scheduled to take place for all FHA case numbers assigned on or after June 3, 2013:

  • revision to the period for assessing the annual Mortgage Insurance Premium
  • removal of the exemption from the annual MIP for loans with terms of 15 years or less and LTVs of ? 78%

Revision to the Period for Assessing Annual MIP

  • LTV < 90%: Regardless of the loan term, for any mortgage with an original principal obligation, excluding financed Up-Front MIP (UFMIP), that is ? 90% LTV, the annual MIP will be assessed until the end of the mortgage term or for the first 11 years of the mortgage term, whichever occurs first
  • LTV > 90%:  For any mortgage with an original principal obligation (excluding financed UFMIP) that is LTV > 90%, FHA will assess the annual MIP until the end of the mortgage term or for the first 30 years of the term, whichever occurs first

Here is the link for addtional information – http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf