FHA MIP Changes Now Official for Delaware Home Owners and Delaware Home Buyers

With the passing of H.R. 5981 and the resulting Public Law 111-229, FHA was given authority to change the amount charged to borrowers for both the Up Front Mortgage Insurance Premium and the Annual Mortgage Insurance premium. These changes that are outlined in Mortgagee Letter 2010-28, are effective for all FHA case numbers assigned on or after October 4th, 2010.

Here are the 6 things you need to know about these changes:

1. The Up Front premium is now 1.0 % for all standard FHA programs (purchase money mortgages, full credit-qualifying refinances, streamline refinances)
2. The Annual premium is now .90% for LTVs GREATER than 95% on 30-year loans
3. The Annual premium is now .85% for LTVs EQUAL to or LESS than 95% on 30-year loans
4. The Annual premium is now .25% for LTVs GREATER than 90% on 15-year loans
5. The Annual premium is now .00% for LTVs EQUAL to or LESS than 90% on 15-year loans
6. These premiums apply to purchases, regular refinances and streamlines

Please note that this new law also gives FHA the authority to raise the Annual premium at will up to 1.5% for LTVs at or below 95% and 1.55% for LTVs more than 95%.

The current FHA upfront mortgage insurance is 2.25% for all standard FHA Home loans.  The monthly amount is 0.55% for LTVs above 95% and 0.5% for LTVs 95% or less. When you run the math, it will increase your monthly mortgage payment for the same loan with the new guidelines compared to the current guidelines.

To read the mortgage letter from FHA follow this link – Mortgage Letter 2010-28.

If you have questions about FHA loans or the changes to FHA guidelines, feel free to call me at 302-703-0727 or send me an e-mail at jthomas@primeres.com.

If you are a First Time Home Buyer then you should attend our Free Delaware First Time Home Buyer Seminar. The next seminar is Saturday, September 25th at the Christiana Hilton Hotel in Newark, Delaware from 10 AM till Noon and again from 1:00 PM till 3:00 PM. Please call 302-703-0727 to register or send an e-mail to jthomas@primeres.com.

If you would like to apply for a Delaware Home Loan, you can APPLY ONLINE HERE, you can call John R. Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713