Thinking about applying for a Florida FHA mortgage soon? You might want to get your application and pre approval started today.
Beginning next week, the Federal Housing Administration (FHA) is changing the mortgage insurance fee chart to U.S. homeowners. For the fourth time since 2010, FHA mortgage insurance premiums are rising for all new home buyers that use FHA financing. For FHA case numbers assigned on, or after, Monday, April 9, 2012, will be two seperate changes. First, FHA Upfront Mortgage Insurance Premiums (UFMIP) will increase by 75 basis points to 1.75%, or $1,750 per $100,000 loan. Upfront Mortgage Insurance Premium is paid at closing, and most commonly added to an FHA borrower’s loan amount. The current FHA upfront mortgage insurance rate is 1%.
Second, annual FHA mortgage insurance premiums are rising ( most people know this as PMI) All new FHA-backed loans will be subject to a 10 basis point increase in annual mortgage insurance premiums, costing homeowners an extra $100 per $100,000 loan per year.
The new FHA annual mortgage insurance premium schedule follows :
- 15-year loan term, loan-to-value > 90% : 0.60% MIP per year
- 15-year loan term, loan-to-value <= 90% : 0.35% MIP per year
- 15-year loan term, loan-to-value <= 78% : 0.00% MIP per year
- 30-year loan term, loan-to-value > 95% : 1.25% MIP per year
- 30-year loan term, loan-to-value <= 95% : 1.20% MIP per year
The fun doesn’t stop there, for loans above $625,500, beginning with FHA Case Numbers assigned on, or after, June 11, 2012, there will be an additional 25 basis point increase in annual MIP.
To calculate your monthly MIP obligation as a FHA homeowners, multiply your starting loan size by your insurance rate from the list above, then divide by 12. Please note – the FHA mortgage insurance changes apply to new FHA Case Numbers only. If you have an FHA home loan approval in-process with your lender, or an existing FHA home loan, these MI changes do not impact you. To avoid paying the higher FHA fee’s, start your FHA mortgage application / pre approval today. Once your complete this you will be assigned a FHA Case Number and locked in at the lower premiums.
FHA makes buying a home possible for so many Florida home owners. Since conventional loans require a large down payment, FHA is often the first choice especially for Florida home buyers. One thing remains, FHA is still one of the best (and only) programs for Florida first time home owners. With only 3.5% down payment, secure fixed rates, government backed, the American dream of homeownership is very possible for most. Florida homebuyers looking to purchases just outside of the major cities (Tampa FL, Orlando FL, Jacksonville FL, Tallahassee FL, Gainesville FL) should also look into the government backed USDA home loan. USDA offers 100% financing in selected locations around Florida. Please click here to learn more.
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