Today's tip is a really short one. I simply want to update you on yet another mortgage lending change, this one referring to FHA.
Effective for all Case #'s (a loan-specific number that FHA assigns to each new loan prior to ordering an appraisal and underwriting it) assigned April 5 and after, FHA is raising it's up-front mortgage insurance premium from the current 1.75% of loan amount to 2.25% in an effort to bolster their declining reserves due to high levels of foreclosure in FHA-insured loans.
We've basically just turned the clock back 10 years with this change. It's the same up-front MIP that we had back in the late '90's...
So, if you have clients looking for a home who will be getting a FHA mortgage, wrap it up real quick this week and help save your clients a little more money.
Your Partner in Greater Success,
Bill Zimmerman
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