FHA Upfront and Monthly MIP Changes

In our commitment to continue to give you more ways to close, we have started a The Davidson Group (TDG) Mortgage Tube audio/video on the 22 ways that FHA allows funds to close. Visit us for detailed explanations http://www.youtube.com/watch?v=LuZWzgLe1DM (for Part 1) Stay tune for Part 2 on Monday HUD Upfront MIP and monthly Mortgage Insurance- Important Changes ...Again HUD has announced this week their 1 year Moratorium on Risk-Based Premiums to go into effect on all New Case Number Assignment dated on October 1, 2008 through September 30, 2009. · Prior to July 14, 2008- All FHA loans had an upfront of 1.50 and a monthly MIP of .50 regardless of the down payment and credit score. · After July 14 (until October 1, 2008): 30/25/20 Year Fixed Credit Scores 680-850 640-679 600-639 560-599* 500-559* 300-499* No FICO score = 90.00 (10% or more down) 1.25/.50 1.25/.50 1.25/.50 1.50/.50 1.75/.50 1.75/.50 1.50/.50 90.01- 95.00 (9.99- 5.00 down) 1.25/.50 1.25/.50 1.50/.50 1.75/.50 2.00/.50 n/a 1.75/.50 >95 (4.99-2.25 down) 1.25/.55 1.50/.55 1.75/.55 2.00/.55 2.25**/.55 n/a 2.00/.55 15/10 Year Fixed Credit Scores 680-850 640-679 600-639 560-599* 500-559* 300-499* No FICO score = 90.00 (10% or more down) 1.00/.00 1.00/.00 1.25/.00 1.50/.00 1.75/.00 1.75/.00 1.50/.00 90.01- 95.00 (9.99- 5.00 down) 1.00/.25 1.25/.25 1.50/.25 1.75/.25 2.00/.25 n/a 1.75/.25 >95 (4.99-2.25 down) 1.25/.25 1.50/.25 1.75/.25 2.00/.25 2.00/.25 n/a 2.00/.25 MOST UPDATED CHANGES ANNOUNCED THIS WEEK: · From October 1, 2008 through September 30, 2009 Upfront MIP: Ø Purchase Money Mortgage and Full Credit Qualifying Refinance = 1.75% Ø Streamline Refinance (all types) = 1.50% Ø FHASecure (Delinquent Mortgages) = 3.0% Monthly MIP: Ø Purchase Money Mortgage, Full Credit Qualifying Refinance, & Streamline Refinance = · 30 years < 95% =.50 (5% of more down) · 30 years LTV >95% = .55 (less than 5% down) · <15yrs LTV < 90% = None (10% or more down) · <15>90% = .25 (less than 10% down) These changes are not huge, but it is important that you are in the know. As you know, we ARE the FHA experts. When we can be of assistance to you and your FHA buyers, please call us at 972-278-3400. Top 7 Tips for Writing Real Estate Ads http://top7business.com/?id=3741 As realtors, a routine part of your job is to write ad copy for newspapers, brochures and internet sites. I came across this great article this week (see link above) and thought that you may want to read it. I hope that you find it beneficial.