FHA NEWS
As of April 18th, 2011 FHA will once again be INCREASING their monthly mortgage insurance premiums. What this will look like in $
Example: $400,000 loan, less than 5% down, 30 year loan
Current monthly Mortgage Insurance: $300
New April 18th monthly Mortgage Insurance : $366.67
That is over a 20% increase!
That is an additional $800 per year in this scenario.
I would strongly suggest you
1) Have your borrowers qualified under upcoming changes and explore other loan programs
2) Encourage your FHA buyers to get serious now. They will need to be in contract prior to April 18th to avoid these changes.
