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FHA changing MIP / PMI requirements effective July 14, 2008

Metzler Mortgage Group at Mortgages Unlimited - Minnesota

NEWS FLASH: FHA changing MIP / PMI requirements effective July 14, 2008

This information is very important for writing FHA purchase agreements and when speaking to buyers. We suggest you print out and save the graphs below and pass this along to others.

FHA, as with many other lending options is switching to new RISK BASED PRICING. Risk-based premiums enable FHA to respond to changes in the market, like the recent implosion of subprime lending, by reaching out to higher-risk borrowers without having to raise premiums for all borrowers. Borrowers are better off, even with higher mortgage insurance premiums, because FHA insurance gives borrowers access to substantially lower interest rates than are charged for subprime loans, thereby lowering borrowers' overall borrowing costs.

Many of FHA's lower-income borrowers have FICO scores above 680 and would qualify for premium reductions relative to today's premium levels. In fact, as a result of the predominantly low- and moderate-income character of FHA borrowers, a larger number of low-income borrowers would benefit from premium reductions than would moderate-, middle-, and upper-income borrowers combined.  

The first number is the UP-FRONT MIP. The second number is the monthly PMI 

FHA Single Family Mortgage Insurance

Upfront and Annual Mortgage Insurance Premiums

(Loan Terms > 15 years)

Effective as of July 14, 2008

All premiums are specified in basis points (0.01%)

Decision Credit Score (FICO)

LTV

850-680

679-640

639-600

599-560

559-500

499-300

NON-TRADITIONAL

≤ 90.00

125/50

125/50

125/50

150/50

175/50

175/50

150/50

90.01-95.00

125/50

125/50

150/50

175/50

200/50

n/a

175/50

> 95

125/55

150/55

175/55

200/55

225a/55

n/a

200/55

  1. a. A first-time homebuyer, with HUD-approved counseling, will pay only 200 basis points for the upfront mortgage insurance premiums.

 Call Joe Metzler for all your MINNESOTA FHA deals at  (651) 552-3681

FHA Single Family Mortgage Insurance

Upfront Mortgage and Annual Mortgage Insurance Premiums

Loan Terms of 15 Years or Fewer

Effective as of July 14, 2008

All premiums are specified in basis points (0.01%)

Decision Credit Score (FICO)

LTV

850-680

679-640

639-600

599-560

559-500

499-300

NON-TRADITIONAL

≤ 90.00

100/0

100/0

125/0

150/0

175/0

175/0

150/0

90.01-95.00

100/25

125/25

150/25

175/25

200/25

n/a

175/25

> 95

125/25

150/25

175/25

200/25

200/25

n/a

200/25

 

 

 

 

 

 

 

 

 

 

 

Need all the details?

For easy reading, start at page 26....     http://portal.hud.gov/pls/portal/docs/PAGE/FHA/IMAGE_LIBRARY/5171-N-02%20RBP%20FINNTC%20TO%20PUBLISH%20%205-13-08%20.PDF

 

Comment balloon 1 commentJoseph Metzler • May 29 2008 05:59PM
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