If you’re beginning the process of buying your next home, it’s time to get moving if you’re considering a FHA loan. The Federal Housing Administration has recently announced increases for FHA Annual Mortgage Insurance Premiums (MIP), and Upfront Mortgage Insurance Premiums (UFMIP).
But FHA insured loans are now popular because guidelines require a minimum credit score of 580 with a minimum down payment of 3.5% of the sales price. According to the FHA, loans have increased from 4.5% in 2005 to 40% of housing purchases in 2010. This has appears to be the catalyst for raising the MIP for FHA loans for the fourth time in 2 years. The latest changes involving both MIP and UFMIP are as follows: The Federal Housing Administration has made these adjustments to encourage the return of private investment into the residential mortgage market. Increasing MIP has become necessary to secure the FHA… Continue reading