Based on the phone calls I’m sending the following to clarify the pending MIP changes on FHA loans. The changes are effective on different dates based on both different loan amounts AND on the type of loan.
Please print out the attached ML 12-03 and keep it as a reference.
Here is a synopsis ONLY of the pending changes as indicated in ML 12-03:
FIRST CHANGES: Effective with case numbers assigned ON or AFTER 4/9/2012
The new UFMIP (Up front MIP) will be 1.75% for all FHA loans and the new annual (collected monthly) will be as follows:
Term greater than 15 years: LTV greater than 95.00% = 1.25%
LTV equal to or less than 95.00% = 1.20%
Term 15 years or less: LTV greater than 95.00% = 0.60%
LTV equal to or less than 95.00% = 0.35%
Note: 15 year loans with an LTV equal to or less than 78% at origination are exempt from the upfront MIP
SECOND CHANGES: Effective with case numbers assigned ON or AFTER 6/11/2012
Loan amounts equal to or less than $625,500 remain the same as above.
Loan amounts GREATER THAN $625,500 have an HIGHER annual (collected monthly) premium as follows:
Term greater than 15 years: LTV greater than 95.00% = 1.50%
LTV equal to or less than 95.00% = 1.45%
Term 15 years or less: LTV greater than 95.00% = 0.85%
LTV equal to or less than 95.00% = 0.60%
The same exemption rule for 15 year terms, less than 78% LTV still applies even for the higher loan amounts
ADDITIONAL CHANGES APPLICABLE TO STREAMLINE REFINANCES **** ONLY **** FOR CASE NUMBERS ASSIGNED ON OR AFTER 6/11/2012
FHA will be allowing REDUCED upfront and annual premiums for SOME FHA streamline loans.
The loan must have been ENDORSED (which means FHA insured it) ON or BEFORE 5/31/2009.
This is VERY important because it doesn’t mean when the loan CLOSED or when the original case number was assigned – it means FHA had to have insured it by that date.
For the cases meeting that criteria, the new premiums will be as follows, regardless of loan amount or loan term:
Upfront MIP = 0.01% of the base loan amount.
Annual MIP = 0.55% of the base loan amount
Make it a great day,
Sean K. La Rue
Senior Vice President – Franklin Loan Center
“Your KEY to Moving Home!” – se habla español
Jumbo Loan Expert | FHA/VA Direct Lender | Reverse Mortgage Advisor
44800 Village Court – Palm Desert, CA 92260
Mobile: 760.835.5663 Office: 760.837.1488 FAX: 800.784.9089
Jan Christensen
Executive Assistant | 760.837.1486 | jchristensen@franklinlc.com
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