Feeling the luck of the Irish? Not if you are an FHA buyer. FHA announced mid February an increase to the Annual Mortgage Insurance Premium on standard FHA loan programs and a change that affects case numbers. As of April 18, 2011, the following changes apply: 1. The Annual Insurance Premium will increase .25% for standard forward mortgages. 2. The upfront Mortgage Insurance remains the same at 1.00%. 3. The Annual Premium is now 1.15% for LTVs GREATER than 95% on 30 year loans. 4. The Annual Premium is now 1.10% for LTVs EQUAL to or LESS than 95% on 30 year loans. 5. The Annual Premium is now .50% for LTVs GREATER than 90% on 15 year loans. 6. The Annual Premium is now .25% for LTVs EQUAL to or LESS than 90% on 15 year loans. 7. Case numbe s with no activity for 6 months will automatically be canceled (includes case numbers pulled prior to April 18th, 2011).
To read Mortgagee Letter 11-10 in its entirety, click here.
But before sulking in your box of lucky charms, the good news is that the payment change is not much. For example, on a 163,000 purchase, FHA Annual MIP monthly payment increases just $33.00 per month. And with the buys in the market place and the interest rates at an all time low, it is an incredible time to invest in real estate!