Warning FHA Buyers
Interest Rates are Great Today
and
Effective 10/1/08 it will cost you more
to purchase a home because of the changes in FHA Mortgage Insurance.
On a $150,000 FHA Loan
All buyers will pay a
$375.00 higher upfront premium.
Buyers with 5% or Less down will also
pay $6.25 more per month.
When President Bush suspended the implementation of FHA's Tiered Pricing everyone was glad that he placed a One year Moratorium on the Higher MIP Premiums. Until Mortgage Letter 2008-22 everyone was happy. With the issuance of the Mortgage Letter the opposite is true. Instead of coming out with Tiered Pricing, FHA increased the MIP across the board to everyone.
If you are considering a purchase, doing it
before Oct 1, 2008
will save you $$$$$$$
Realtors refer to ML 2008-22
Ask your Realtor for more Information
Note to Ohio Buyers: 3% or 4% Down Payments assistance will continue to be available if you use the Ohio First Time Buyers Program.
GO to HUD site. There is a memo out that states the new fees will be on hold for the next year. If you want a copy let me know.
IF anyone has a link mentioned by Jason, Please post it here. Because I hope that I am incorrect.
The information presented here was from the Mortgage Letter that was just issued. It confirms the one year Moratorium that was announced by President Bush. However it changes the the Upfront and Montly MIP. I am surprised that HUD would do this, because it basically does made moot the Moratorium that Bush announced.
Also in my original post I said it will cost every FHA buyer $375.00. I was referring to the difference between the old 1.50 Upfront Premiim that was in effect starting 7/14/08. Because of the Tiered pricing it will cost some FHA Buyers even more because HUD did have a 1.25% Upfront Premium for some buyers (based on Credit Scores and/or Downpayments).