|
The
following changes to FHA Mortgage
Insurance Premiums will take effect with
the respective case number assignment
dates, April 1st, 2013 and June 3rd,
2013. These changes are big and may
affect borrowers ability to qualify for
FHA financing. These changes
include:
FHA MIp Policy Change starting April
1, 2013
Effective with FHA case numbers assigned
on or after
April 1, 2013 FHA Mortgage Insurance
Premiums will
increase (see Table below).
The increases in the
annual MIP specified in this ML apply to
all mortgages insured under FHA’s Single
Family Mortgage Insurance Programs
except:
Home
Improvement Loans):
HUD "Title
I"
insures
private lenders against loss on
property improvement loans they
make. HUD does not lend money for
property improvements. Title I can
be used in connection with a 203k
Rehabilitation Mortgage. For
additional information on HUD "Title
I", please visit HUD website at
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/title/ti_abou
Home
Equity Conversion Mortgages (HECM or
Reverse Mortgage)
Reverse mortgages are increasing in
popularity with seniors who have
equity in their homes and want to
supplement their income. The only
reverse mortgage insured by the U.S.
Federal Government is called a Home
Equity Conversion Mortgage or HECM,
and is only available through an FHA
approved lender.
Section
247 (Hawaiian Homelands)
FHA's mortgage insurance provides
opportunities to low- and
moderate-income Native Hawaiians to
purchase a home on Hawaiian home
lands. FHA insures loans made to
native Hawaiians to purchase one- to
four-family dwellings located on
Hawaiian home lands.
Section 248 (Indian Reservations)
A family who
purchases a home under this program
can apply for financing through a
FHA approved lending institution
such as a bank, savings and loan, or
a mortgage company. To quality, the
borrower must meet standard FHA
credit qualifications. An eligible
borrower can receive approximately
97% financing . An eligible party
can produce a gift for the down
payment. Closing cost can be
financed; covered by a gift, grant,
or secondary financing; or paid by
the seller without reduction in
value.
FHA case
numbers assigned on or after April 1,
2013 mean BIG changes for borrowers
and may affect their ability to qualify
for FHA financing. These changes
include in Table 1 as follow:
|
|
|
Current MIP
Rate and Durations Up to |
New Rules effective with Case
Numbers
|
|
Item
Changing |
Current
Rules |
Up
to 3/31/2013 |
Up to
6/2/2013 |
starting 4/1/2013
|
starting 6/3/2013
|
|
|
Base Loan Amount <
$625,500 |
MIP Rate |
MIP Duration |
MIP Rate |
MIP Duration
|
|
> 15yr Term
Annual MIP
(paid Monthly with Mortgage
Payment)
MIP Duration |
|
down payment < 5.00%
|
1.25% |
Cancelled at 78%
LTV & 5 Years |
1.35%
|
Loan Term |
|
5.00%
< down
payment < 10.00% |
1.20% |
Cancelled at 78%
LTV & 5 Years
|
1.30%
|
Loan Term |
|
10.00%
< down
payment < 22% |
1.20%
|
Cancelled at 78%
LTV & 5 Years |
1.30%
|
11 Years |
|
down
payment >22.00% |
1.20% |
5 Years |
1.30% |
11 Years |
|
|
|
<
15yr Term
Annual MIP
(paid Monthly with Mortgage
Payment)
MIP Duration |
|
down payment < 10.00%
|
0.60% |
Cancelled at 78%
LTV
|
0.70%
|
Loan Term |
|
10.00% < down
payment
< 22%
|
0.35% |
Cancelled at 78%
LTV |
0.45%
|
11 Years |
|
down
payment
>
22.00% |
0.00% |
No Annual MIP |
0.45%
|
11 Years |
FHA MIp Policy Change starting June 3,
2013
Effective with FHA case numbers assigned
on or after June 3, 2013 FHA
Mortgage Insurance
Duration will change
(see Table 1).
The changes to the
duration of the annual MIP as specified
in this ML are effective for all Single
Family FHA programs for which FHA
charges an annual MIP except:
-
Title I
(Home
Improvement Loans):
HUD "Title
I"
insures
private lenders against loss on
property improvement loans they
make. HUD does not lend money for
property improvements. Title I can
be used in connection with a 203k
Rehabilitation Mortgage.
-
Home
Equity Conversion Mortgages (HECM or
Reverse Mortgage)
Reverse mortgages are increasing in
popularity with seniors who have
equity in their homes and want to
supplement their income. The only
reverse mortgage insured by the U.S.
Federal Government is called a Home
Equity Conversion Mortgage or HECM,
and is only available through an FHA
approved lender.
For detail
explanation and calculation of these new
changes, visit
http://www.TexasFiveStarRealty.com/FHA_Changes_2013_04.asp |
