- INCREASE TO FHA MONTHLY MORTGAGE INSURANCE PREMIUM
Prior to October 4, 2010, the Monthly Mortgage Insurance Premium was based on a factor of .55% of the loan amount divided by 12 (if the loan to value was over 95%). As of October 4, the factor is now .9%. As an example, on a $400,000 mortgage, using the old factor of .55%, the Monthly Mortgage Insurance would have been $183. ($400.000 x .0055 / 12 = $183). Now, using .9%, the Monthly Mortgage Insurance is $300. The nice thing is there are some benefits to the changes in mortgage insurance the Upfront Insurance premium has decreased.
- FHA UPFRONT MORTGAGE INSURANCE PREMIUM DECREASED
The Upfront Mortgage Insurance Premium used to be 2.25%. But on October 4, 2010, they dropped it to only 1%. Using the same base loan amount as our previous example of $400,000 and using the old (UFMIP) of 2.25% $9,000 would have been added to the Idaho home buyers loan making the total loan amount $409,000. With the new upfront mortgage insurance premium of 1% we would have a total loan amount of $404,000.
- FHA STILL BEST OPTION FOR IDAHO FIRST TIME HOME BUYERS
Idaho first time home buyers FHA is still your best option. Fannie Mae and Freddie Mac guidelines continue to be very tight for low down payment home buyers. FHA mortgages are still very flexible and they allow for higher debt to income ratios as well as lower credit scores. FHA allows as little as 3.5% down. Many Idaho home buyers are finding FHA to be the best choice even if they have quite a bit of money to put down.
If you have questions about an Idaho FHA mortgage whether you are purchasing or refinancing a home feel free to contact me.
Prior to October 4, 2010, the Monthly Mortgage Insurance Premium was based on a factor of .55% of the loan amount divided by 12 (if the loan to value was over 95%). As of October 4, the factor is now .9%. As an example, on a $400,000 mortgage, using the old factor of .55%, the Monthly Mortgage Insurance would have been $183. ($400.000 x .0055 / 12 = $183). Now, using .9%, the Monthly Mortgage Insurance is $300. The nice thing is there are some benefits to the changes in mortgage insurance the Upfront Insurance premium has decreased.
- FHA UPFRONT MORTGAGE INSURANCE PREMIUM DECREASED
The Upfront Mortgage Insurance Premium used to be 2.25%. But on October 4, 2010, they dropped it to only 1%. Using the same base loan amount as our previous example of $400,000 and using the old (UFMIP) of 2.25% $9,000 would have been added to the Idaho home buyers loan making the total loan amount $409,000. With the new upfront mortgage insurance premium of 1% we would have a total loan amount of $404,000.
- FHA STILL BEST OPTION FOR IDAHO FIRST TIME HOME BUYERS
Idaho first time home buyers FHA is still your best option. Fannie Mae and Freddie Mac guidelines continue to be very tight for low down payment home buyers. FHA mortgages are still very flexible and they allow for higher debt to income ratios as well as lower credit scores. FHA allows as little as 3.5% down. Many Idaho home buyers are finding FHA to be the best choice even if they have quite a bit of money to put down.
If you have questions about an Idaho FHA mortgage whether you are purchasing or refinancing a home feel free to contact me.
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