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The Federal Housing Administration announced on March 6th 2012 that it would reduce mortgage insurance premiums for certain homeowners to refinance and take advantage of the lower market rates. Qualifications are:

• FHA loans must be originated before June 1st 2009.
• Homeowners must be current with only 1X 30 day late in the past 6 months and max of 2 late payments in the last 12 months.
• No income, employment, credit score or appraisal required (so underwater homeowners can still refinance).
• Up-front mortgage insurance premium is reduced to .01% of the loan balance (financed into the loan amount) and annual mortgage insurance is reduced to .55%.
• Net tangible benefit of at least 5% savings in monthly principal, interest and mortgage insurance payments.

This new FHA program will be available starting June 11, 2012. Call me today get your refinancing started! A full mortgagee letter can be read here.