Do you remembering my warning in November that FHA was going to be
increasing and lengthening the mortgage insurance premiums? Well....
IT'S TIME!
In Mortgagee Letter 2013-04 released 1/31/13, HUD announced the
following changes:
Increased Monthly Cost - right now, the typical FHA buyer is
charged a 1.25% annual charge for mortgage insurance (divided by 12 and paid
monthly). With this change, that rate will go to 1.35%.
No Removal of Mortgage Insurance - Currently, the typical FHA buyer can
have the monthly mortgage insurance removed after 5 years if they have 22%
equity by then. Effective with this change, that goes away. They will
have monthly MI for the entire life of the loan (yes, all 30 years!).
These changes are significant and you want your buyers to get their FHA loan
before they take effect. These changes go into effect for case numbers issued on April
1st, 2013 or later.
PLEASE NOTE - this is case number, not contract
date. A case number is not issued until after your lender starts the loan
process (typically 3-5 days after) so you will want to have your buyer in
contract by mid-March if possible to be safe.
As you're talking to your buyers, remember that no one does FHA
lending better than Ruoff. If they want to get their home purchased smoothly
before these increases take effect, have them give me a call. I'd be honored to
assist.
0 comments:
Post a Comment