FHA Premium Increases Will Impact Borrowers' Ability to Qualify
(Effective date October 4, 2010)

FHA is raising its annual mortgage insurance premium charges.

A contract must be in place and an FHA case number assigned by September 7 in order to avoid the MIP increase.

What does this mean for borrowers?

Some borrowers may no longer qualify because monthly payment will be increasing.

Example of FHA increase for $200k loan @ 5% - 30 year fixed

.55% Today $204,500 P/I $1098 MI $94 = $1192

.90% 10/4 $202,000 P/I $1083 MI $152 = $1235 (+$43)

1.55% Future $202,000 P/I $1083 MI $261 = $1344 (+$152)

For any FHA borrower who is considering buying, they may be better-able to qualify and will save money if they buy prior to this new rule going into place.

Please call me if you have any questions.