01-31-2013 07:42 AM - edited 01-31-2013 07:43 AM
Just saw this article today on CNN.com relating to FHA iinsurance rates and length of PMI changing and wanted to share.
01-31-2013 07:52 AM
you gotta be kidding me, I am about to apply for a house this February. Ugggh. More money out of my pocket.
01-31-2013 08:23 AM
01-31-2013 08:24 AM - edited 01-31-2013 08:26 AM
The biggest shock out of all that is having to pay PMI for the life of the loan if you don't put at least 10% down! That will turn a lot of people off, they will need to either go Conventional or refi into a Conventional at a later time.
Still doesn't say when this will take effect, which is really the most important thing.
01-31-2013 08:31 AM
01-31-2013 08:31 AM
01-31-2013 08:36 AM
Rumor is the new policies will go into effect for new FHA case #'s on & after 4/1/13. Next step is that a mortgagee letter will be released. Right now the only information HUD has put forth on this is at http://portal.hud.gov/hudportal/HUD?src=/press/pre
Another interesting tidbit to note is that manual underwriting will be required for borrowers who have scores less than 620 & total debt ratios higher than 43%. There are still several lenders who go down to a 580 score (or even lower) for FHA financing now, but that could be reduced when this new policy goes into effect.
01-31-2013 08:49 AM
When is a case number assigned? My wife and i can't apply officially until mid-March as we are waiting out the 2 year discharge from her bankruptcy. If we apply and are approved by the end of March...will this still have an impact on us since we won't actually close the loan until the house is built later in the summer?
01-31-2013 08:54 AM
On a purchase loan, FHA case #'s can be assigned after you have an accepted purchase contract. They are good for 6 months, and can be extended under certain circumstances.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.