Danny Salas

FHA Increasing Mortgage Insurance Costs

HUGE FHA Announcement

The Federal Housing Administration (FHA) has announced that they are close to meeting their maximum capital ratios.  Since there are no other real alternatives to Fannie Mae and Freddie Mac financing options, other than FHA loans, they now contribute to approximately thirty percent of the market share of new loans.  Therefore, FHA has announced that they will be increasing their mortgage insurance requirements.  Currently, the Mortgage Insurance Premium (financed into the loan amount) is 1.75% of the loan amount.  This will increase to 2.25%.  Also, the currently monthly Mortgage Insurance calculation is 0.55% of the loan amount, divided by 12 months.  This fee will increase, as well, however, that factor is being negotiated.  Also, any borrower, with an FICO score less than 580, will have to put 10% down.

More to Come…

This entry was posted on Wednesday, January 20th, 2010 at 8:56 am and is filed under Chico Home Loans, Home Buying, Mortgage Industry Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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