FHA Changes For 2013

27 Feb

FHA-Approved-Lender-Seal

FHA has long been one of the more affordable mortgage products for consumers to entertain when looking to purchase a home.  This loan only requires a down payment of 3.5%, which can be in the form of gift funds, and only requires a nominal credit score. Here are the upcoming changes Federal Housing Administration is making to this popular loan program:

  • April 1, 2013 , the Federal Housing Administration is increasing its required monthly mortgage insurance premium (MIP) from 1.25% to 1.35%. While that might sound like much, it can add up to a substantial amount of money over time.
  • Starting June 3, 2013, the FHA will no longer allow you to cancel your mortgage insurance premium (MIP) payments when your loan balance drops to 78% of your property’s value. That means you could be paying a mortgage insurance premium for decades.
  • For loans between $625,000 to $729,000 the down-payment requirement will increase from 3.5% to 5%.

 

If you are on the fence, or entertaining which financing to use, don’t let this happen to you. Secure your FHA financing today before these changes go into effect. Take advantage of the low 3.5% down payment and some of the lowest interest rates in mortgage history, before they rise again.

 

 

 

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