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FHA loans anyone?

February 12th, 2013 9:48 AM by Sam Kader

HUD recently accounced with the mortgagee letter 2013-04 that starting April 1, FHA's annual mortgage-insurance premiums for most new loans will jump by one-tenth of a percentage point or 10 basis points. See schedule below.

Effective June 3 - FHA announced that it will no longer allow mortgage-insurance cancellation once the loan-to-value declines to 78% of the original loan amount. Borrowers with below 620 credit scores and 43 percent debt-to-income ratio will receive a downgrade to "manual" underwriting - which means that the file will gets closer scrutiny by the underwriter. 

Term >15 Years
Base Loan Amount LTV Previous MIP New MIP
= $625,500 < 95.00% 120 bps 130 bps
= $625,500 > 95.00% 125 bps 135 bps
> $625,500 < 95.00% 145 bps 150 bps
> $625,500 > 95.00% 150 bps 155 bps




Term =15 Years
= $625,500 78.01 - 90.00% 35 bps 45 bps
= $625,500 > 90.00% 60 bps 70 bps
> $625,500 78.01 - 90.00% 60 bps 70 bps
> $625,500 > 90.00% 85bps 95 bps


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