Aug 30
Larry Saunders
“Making Home Loans Easy”
I thought it would be good to update you with the latest information about changes coming soon to FHA financing. FHA financing is currently being used for a 25% of home loans so it is a very important home finance program that enables people to purchase homes with as little as 3.5% down. Currently, the most commonly used form of FHA financing is 30 year, fixed rate for 96.5% of the purchase price which requires an Up-Front Mortgage Insurance Premium (UFMIP) of 2.25% and an annual Monthly Insurance Premium (MIP) of 0.55% per year. Effective for all new FHA loans starting on October 4, the UFMIP will be reduced to 1% of the mortgage amount (Yea!). However, the monthly MIP will be increased to 0.85%-0.90% annually. The net effect of these changes is that the monthly payment for an FHA borrower will increase starting October 4. Using a $250,000 home purchase, the monthly
payments for a borrower will increase by about $54 per month when these changes go into effect. If you are working with a FHA borrower, it would be beneficial for them to get their desired home under contract prior to the fast approaching
October 4 deadline. Have any questions about home loans? Call anytime. Larry Saunders
Mortgage Loan Officer
Mahone Mortgage, LLC
Office: (434) 293-5200
larrys@mindspring.com
