Question about FHA UFMIP rolled into the loan

[Anonymous]

Hello all,

My lender stated that as of January 1 FHA is now allowing the UFMIP to be rolled into the loan even if it would cause the loan to exceed the state limit.

We are purchasing a home for 298k and I had thought we would have to pay the 298-271 limit = $27k upfront plus the UFMIP on top of it.

But I got a call yesterday from my lender and she said I wouldn't have to pay the UFMIP on top of the $27k and my new loan would be 271+UFMIP.

Can anyone else verify regarding this change?

[Anonymous]

Maybe I can answer my own question according to the FHA website:

When it comes to including UFMIP in the loan amount, borrowers don’t need to worry about exceeding the county loan limits because of the added UFMIP amount. According to HUD 4155.2, Chapter 7 Section 2.B, UFMIP Payment Policy,

“The UFMIP amount, that is the total mortgage amount, is not considered when determining compliance with statutory loan limits or LTV limits. The base mortgage amount must comply with the requirements. The total mortgage amount may exceed this limit by the financed UFMIP amount.” (Emphasis ours.)

To further clarify, special attention should be given to the language in that quote of the FHA loan rules covering this issue–note the FHA makes a distinction between the “base” loan amount and the “total” loan amount, which would be the sum of both the loan and the UFMIP included in that loan.

The base loan amount would be governed by the county loan limits. The total loan amount would include UFMIP should the borrower choose to finance it instead of paying it up front in cash.

http://www.fha.com/fha_article.cfm?id=335

So it seems my lender was correct though I don't know if this is something new......

Any comment would be appreciated.

[tshope4205]

I don't believe this is new - but I could be wrong.