topic Re: New FHA pmi question in Mortgage Loans

New FHA pmi question

daneatreia — Sun, 10 Mar 2013 07:53:11 GMT

I was told that beginning April 1st 2013 that you will no longer be able to drop your pmi at 5years or 78% percent, is this true? Is there a way to avoid it?

Re: New FHA pmi question

Anonymous — Sun, 10 Mar 2013 08:15:57 GMT

The mortgage insurance rate is going up to 1.35% vs 1.25% on April 1st, but PMI can still be cancelled at 78% LTV. On June 3rd, PMI will be required for the life of the loan at the higher rate. So to avoid this, you will have to be on contract and have an FHA case # by end March or end of May, depending on what you are trying to avoid and whether or not it is supportable.

Re: New FHA pmi question

DallasLoanGuy — Sun, 10 Mar 2013 16:52:35 GMT

@daneatreia wrote:
Is there a way to avoid it?

Re: New FHA pmi question

Anonymous — Sun, 10 Mar 2013 18:16:16 GMT

Yes there is a way to avoid the changes...see my first post.

Re: New FHA pmi question

DallasLoanGuy — Sun, 10 Mar 2013 23:26:28 GMT

@Anonymous wrote:
Yes there is a way to avoid the changes...see my first post.

well duh

Re: New FHA pmi question

Anonymous — Sun, 10 Mar 2013 23:48:09 GMT

Well I don't think so as your answer was no.

Re: New FHA pmi question

DallasLoanGuy — Mon, 11 Mar 2013 00:03:29 GMT

@Anonymous wrote:
Well I don't think so as your answer was no.

when the op asked how to get around it.... i was thinking about loan guidelines... not deadlines.

"no..... more down payment cant get around it. no.... you have no buy out option."

i think the op knew full well that they could avoid it by getting in before the change... as per the question.

Re: New FHA pmi question

Anonymous — Mon, 11 Mar 2013 00:09:31 GMT

OP was more asking about how to avoid being subject to the forthcoming changes to FHA Mortgage Loans.

Re: New FHA pmi question

Anonymous — Mon, 11 Mar 2013 00:11:02 GMT

Not everyone knows what needs to be in place in order to get an FHA case number and the deadline the lender requires for grandfathering.

Re: New FHA pmi question

DallasLoanGuy — Mon, 11 Mar 2013 01:08:12 GMT

@Anonymous wrote:
Not everyone knows what needs to be in place in order to get an FHA case number and the deadline the lender requires for grandfathering.

they do now

Re: New FHA pmi question

Anonymous — Mon, 11 Mar 2013 04:17:34 GMT

:-|

Re: New FHA pmi question

Anonymous — Mon, 11 Mar 2013 04:33:42 GMT

You guys are funny!

That being said, if I get a case number, how long is it good for? What I mean is, what will cause that case number to no longer be valid or need to be replaced?

Re: New FHA pmi question

Anonymous — Mon, 11 Mar 2013 05:32:49 GMT

LOL...yeah, Dallas is picking with me. :-)

It is good for 6 months I believe. If you go on contract for a different house later on, they will issue a new FHA case number and you will no longer be grandfathered so you will need to stick with the contract after the new rules go into effect for them not to apply to you.

Re: New FHA pmi question

Anonymous — Tue, 12 Mar 2013 01:57:15 GMT

Hey guys

Re: New FHA pmi question

Anonymous — Tue, 12 Mar 2013 01:42:35 GMT

Yes you should have already avoided it as you are on Contract before the deadline. You made it! Talk with your LO about your FHA Case number...ask when it will be generated. You should have a case number by June 3rd and probably much sooner than that.

Re: New FHA pmi question

Anonymous — Tue, 12 Mar 2013 01:49:53 GMT

MovingForward, you are the man! What a quick response!

I actually didn't sign a contract with the bank, it was the contract with the builder. Perhaps, I'm confusing you and myself...lol. It was where we signed documents regarding the Builder's responsibilities, warranties, etc...

With the LO and bank, we have just done the pre-qualification. We are meeting with him tomorrow to give him salary/bank information, but I was anxious after reading about the new rules.