FHA mortgage insurance changes (4/1/13 & 6/3/13)

[tooleman694]

I have heard it go both ways.

But from what I understand, if you can get a DU approval now then you can get a case number but you cant actually close till the time is up. But I believe a case number is only good for 6 months.

[golo]

So the annual MIP will be the same as the UFMIP? Please enlighten me, thanks in advance.

[anh2lua]

Wait, so, you still can "refinance" to get out of PMI after 6/3?

Here is my situation:

I am currently own a house and have at least 130k equity.

I want to buy another house, then sell my old house so that I won't have to rent while looking for another house.

Let say I bought a house for 450k, with 3.5% down payment ($15750).

Two months later, I sold my old house and get 100k back after all the fees/charges.

Now I use that 100k to pay down the new loan. That should bring the balance down to around 74% +/- LTV (assumed the house value stays the same).

Can I refinance at this point and convert to conventional to get out PMI?

[Mike_B03]

Yes, you can always refinance into a conventional and drop PMI if you have at least 78% LTV.
Keep in mind though that part of the FHA loan is UFMIP, which is a pretty large amount and gets rolled into the loan, which means even if you refinance, the new loan will still have that amount to pay.

[anh2lua]

Thank you.

[Cheryla18]

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@Mike_B03 wrote:
Yes, you can always refinance into a conventional and drop PMI if you have at least 78% LTV.
Keep in mind though that part of the FHA loan is UFMIP, which is a pretty large amount and gets rolled into the loan, which means even if you refinance, the new loan will still have that amount to pay.

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UFMIP??

[Mike_B03]

UFMIP is Up Front Mortgage Insurance Premium, which all FHA loans have, and even though it's called "Up Front", most poeple roll it into the loan. It's just one of the two parts of mortgage insurance with an FHA loan, the other is the monthly payments. 

The UFMIP is 1.75% of the purchase price I believe, with the monthly payments being about 1%. You end up paying both, but if you refinance into a conventional loan, you get rid of the monthly MIP payments but the FHA still gets that 1.75% that got rolled into the loan when the loan is paid off by the new lender.

[cazz]

does the fha still have the rule that you cant have any collections that are more than $1,000 in order to get approval for a loan?