We just wanted to pass along some news about FHA to you. The administration just announced that would be raising the monthly mortgage insurance premiums on FHA loans. As you already know FHA loans have become a common loan program in this current market environment. This increase in monthly mortgage insurance can have an adverse effect on your purchasing power.
Currently FHA monthly mortgage insurance on the 30 year fixed is .90 of the base loan amount. Starting on April 18th this amount will increase by .25% to 1.15%.
That means you will pay more monthly and will qualify for less overall.
The change in FHA mortgage insurance will ultimately change buyer affordability. Under the new mortgage insurance premiums a buyer that is qualified for a $2,000 monthly payment will see their buying power diminished around $7,000 to $10,000. Again this will take effect on all FHA case numbers issued starting April 18th.
Call or E-mail us now for more information!