FHA Changes

FHA Changes

The Federal Housing Administration (FHA) is easily one of the most popular home financing options in recent history. They have helped several people afford a home with the ability to have lower down payments and several financing options compared to conventional loans. However several changes will be made on October 4th, 2010.

These changes directly effect Mortgage Insurance Premiums (MIP). FHA will lower its upfront premium simultaneously with the increase to the annual premium. This new plan enables home buyers to pay a new Mortgage Insurance Premium Funding Fee (MIP/FF) and pay a new monthly premium percentage.

What does this mean to you? What are the changes that have been put in place? How beneficial is it that you get your loan in before October 4th? Call one of our mortgage professionals to find out more about this and how quickly you can close on your new home!