FHA Announces Major Changes
In an effort to
reinforce FHA’s Mortgage Insurance Fund, the following changes will be taking
place on April 1,
2013:
- Manual Underwriting required for loans with credit scores below 620 AND qualifying ratios above 43%
- FHA annual mortgage insurance premium will increase by 0.10 percent (10 basis points)
- For loan amounts at or above $625,5000 - FHA annual mortgage insurance premium will increase by 0.05 percent (5 basis points)
- FHA will no longer cancel MIP (This replaces the current policy that canceled MIP when the LTV reached 78%).
ü Borrower
will continue to pay MIP for the life of the FHA loan, regardless of the
LTV.
- For loans above $625,500 – down payment increasing to 5% (no longer 3.5%)
- Thank you Dana Dukelow Surety Financial
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