FHA is making more changes in the near future which will
increase the cost of borrowing under the program. One more reason to act now before the changes
take effect, and while rates and prices are still so very low!
Below is the detail - In April the monthly Mortgage
Insurance Premium is going up...by only about $8-9/ month per $100,000 of loan
amount. A 10 basis pt increase
More significant is that in June FHA is reverting to an
old rule about how long you must keep the Mortgage Insurance on your loan.
CURRENTLY - FHA
requires the loan be held for at least 5 years and that you have obtained
78% Loan to Value in the home.
In June - if you put 10% or more down, you must hold the
loan for at least 11 years and obtain the 78% Loan to Value to have the MIP
removed.
In June - if you put less than 10% down, you must keep
the MIP for the life of the loan. The
way the rule used to be.
If you are under contract prior to the effective dates
and your case number gets assigned you can avoid these new changes. Communicate
with your Shelter Mortgage Loan Officer
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