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FHA reduced annual mortgage insurance premium

January 12th, 2015 3:56 PM by Sam Kader

FHA has recently published Mortgagee Letter 2015-01 implementing the reduced annual mortgage insurance premiums effective for case numbers assigned on or after January 26th, 2015. FHA will temporarily approve cancellation requests for active case numbers within 30 days on the effective date of this Mortgagee Letter. 
  • Annual premium is reduced 50 basis points on both purchase and refinance transactions.
  • Applies to all FHA loans w/ terms greater than 15 years
    • There is no change in premium on 15 year or shorter terms
  • All loan types are affected except streamline refinances that are refinancing existing FHA loans endorsed before May 31, 2009
    • Hawaiian homelands (Section 247) are also excluded.
  • There is no change to the upfront premium or the life of loan requirement - currently at 1.75%.

Call me if FHA financing is the best for you.



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