FHA Mortgage Oct 4 Price Increase

[grammysue]

Anyone heard about this?  Our realtor is telling us that homes closed after October 4 will have a higher upfront insurance loan amount fee, and that the monthly premiums for it will be almost doubling...considering her track record so far, I'm not really believing much of what she says.....thanks!

[Anonymous]

---

@grammysue wrote:

Anyone heard about this?  Our realtor is telling us that homes closed after October 4 will have a higher upfront insurance loan amount fee, and that the monthly premiums for it will be almost doubling...considering her track record so far, I'm not really believing much of what she says.....thanks!

---

It will be a lower UFMIP, but a highter monthly MIP.

And it is based on the date the file is opened with FHA (when your lender requests an appraisal), not when you close.  If you have a house in mind, I would get moving! Yes the monthly MIP will almost double. From .05% to .09% of your loan amount is what I'm hearing.

I'm sure Dallas or Shane would know more than I do.

[grammysue]

Wow....between that increased monthly amount and the ridiculous homeowner's premium we were quoted, not sure that a house is such a great idea....our FHA file was opened last month and we could not close on a condo the lender had said was FHA but wasn't, so we wrote an offer on a house and the case file # transferred, so we are ok...but the house is a rehab and is falling under the "flipping" guidelines....more paperwork....if this doesn't work we will move on to house #3 and were told the case file # will again go with us if this deal doesn't go......it is SO much harder to buy a house, no wonder the market is dead!

[happy0510]

---

@grammysue wrote:

Wow....between that increased monthly amount and the ridiculous homeowner's premium we were quoted, not sure that a house is such a great idea....our FHA file was opened last month and we could not close on a condo the lender had said was FHA but wasn't, so we wrote an offer on a house and the case file # transferred, so we are ok...but the house is a rehab and is falling under the "flipping" guidelines....more paperwork....if this doesn't work we will move on to house #3 and were told the case file # will again go with us if this deal doesn't go......it is SO much harder to buy a house, no wonder the market is dead!

---

Hi Grammysue,

I feel ya! I'm getting very frightened with this new additional monthly payment.  It's a difference from being in my comfort zone and put just outside of it.  I can't believe us new homeowners are paying the price for previous FHA buyers!!

Happy

[DallasLoanGuy]

---

@grammysue wrote:

Anyone heard about this?  Our realtor is telling us that homes closed after October 4 will have a higher upfront insurance loan amount fee, and that the monthly premiums for it will be almost doubling...considering her track record so far, I'm not really believing much of what she says.....thanks!

---

For "case numbers"* ordered on or after Oct 4th you will get a reduced UFMIP and a higher monthly MIP

Don't talk to your realtor about this.... talk to the lender.

UFMIP = up front mortgage insurance premium

monthly MIP = added to your mortgage payment every month

case numbers = ordered AFTER you have selected aa property

[happy0510]

Made it just in time!

[mkm77]

The new structure will help all of those FHA refinances due to lower closing cost.