FHA Increases Upfront MIP
Beginning April 4, 2010, FHA will raise its upfront Mortgage Insurance from 1.75% to 2.25%. Other discussions taking place – decrease seller concessions from 6% to 3%. If you need an FHA loan, start looking in earnest for a home before the increase takes place. FHA is looking for ways to increase their income, and have a congressional mandate to have a certain percentage of funds in reserves. We will likely see them make more changes that will toughen the requirements and make their loans more expensive this year. Stay tuned!
Team Annett Office