Chantilly, Centreville and Other Home Buyers: Be aware of these FHA changes
August 17th, 2010 categories: Buyer Strategies, Mortgage & Finance
Chantilly and Centreville home buyers will want to be aware that FHA is doing another round of modification on its mortgage insurance requirements.
The changes will impact the initial as well as annual premiums, starting with cases on October 4.
With a 30-year fixed-rate FHA mortgage, and at least 5 percent equity, the numbers look like this:
- Upfront MIP drops to 1.000% of the amount borrowed from 2.250%
- Annual MIP increases to 0.850% of the amount borrowed from 0.500%
For Chantilly and Centreville home buyers, as well as others using the program, this MIP change lowers the upfront cost of an FHA-insured mortgage, but increases the long-term costs.
FHA believes the change will help them by about 300 million in annual premiums. This should at least help to bring more financial stability to this much used program.
At the current rate, the FHA is on pace to back 1.7 million loans this year.
You will have to make the judgment as to whether getting your FHA case number before October 4 is best for you.
If you’re unsure of how the new FHA mortgage premiums will impact your mortgage, be sure to call or email your loan officer for help, or contact us if you need a few referrals for reliable professionals we have worked with.
By the way, initially the FHA said the implementation would be September 7. It was later amended to October 4, 2010.
If you have you sites set on taking advantage of the opportunities in the current market, either “normal” properties or those that are Short Sales or foreclosures, please know we are here to help you navigate your way to a terrific deal. Let us know how we can help!
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