For many buyers that can not qualify for conventional financing FHA is the only option to purchase a home. There are some new changes that will affect FHA finance loans and it will cost buyers more up front and throughout the length of the loan. *Effective April 1, 2013:
FHA Annual Mortgage Insurance Premium for 30 Year loans will increase to 1.35
Currently Annual FHA (MIP) is 1.25 for 30 Year Loans
Up Front Mortgage Insurance (UFMIP) 1.75 percent of the loan amount-for 15 and 30 Year Loans
*Effective June 3, 2013:
Mortgage Insurance Premium will No Longer Expire
Currently MIP Expires in five years and when loan to value drops to 78%
*If you are currently in the market to purchase a home with FHA financing then it would be wise to close prior to June 3rd. Since it could take up to 60 days to secure an FHA loan time is of the essence to find a property and get under contract. If you need help finding a home call The Senecal Team today.
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