Danny Salas

FHA Pending MIP Increase in April 2012…Act NOW

The Department of Housing and Urban Development Announces additional MIP increases scheduled for 2012.

As most of you already know President Obama has already initiated a 10 basis point increase on all loans administered by Fannie Mae, Freddie Mac and the FHA. As far as FHA loans are concerned this change will be implemented by an increase of 10 basis points to the annual MIP Premium. In addition to this increase, HUD will be adding an additional 25 basis points to FHA loans that exceed the 625k loan amount for a total of a 35 basis point increase. HUD also discussed the high likely hood of adding another, yet to be determined, sum top of all of this to help shore up the depleted FHA MIP fund.

What does this mean to you?

What this all means is there will be a material increase to FHA financing, especially for loan amounts that exceed $625k (do not worry, Butte County’s FHA Loan limits remain at $400,000) and will go into effect in April of 2012. There will be a mortgagee letter released within the next couple weeks to cover all of these details.

**If you have buyers that are planning to utilize FHA financing to acquire a new home, it would be a good idea to get these fence sitter’s to consider acting on their financing needs before these changes are implemented in April 2012.**

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This entry was posted on Thursday, February 16th, 2012 at 11:58 am and is filed under Home Buying, Loan Qualification, 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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