HUD Issues Mortgagee Letter 2015-01 Revising the MIP

Effective with case numbers assigned on or after January 26, 2015, the FHA Annual MIP premium factor for all Title II forward mortgages has been reduced by 50 bps (0.5%).

Term > 15 Years
Base Loan Amt. LTV Previous MIP New MIP

≤ $625,500 ≤ 95.00% 130 bps 80 bps
≤ $625,500 > 95.00% 135 bps 85 bps
> $625,500 ≤ 95.00% 150 bps 100 bps
> $625,500 > 95.00% 155 bps 105 bps

Term ≤ 15 Years (REMAINS THE SAME)

To allow current mortgages in progress to obtain the reduced pricing, HUD will temporarily allow for the cancellation of current case numbers in order to secure new case numbers associated with the cheaper pricing.

For more information, you may access HUD Mortgagee Letter 2015-01 HERE!

HUD Issues Mortgagee Letter 2015-01 Revising the MIP

Big FHA changes this year in 2013!

Uncle Sam needs more money, so he’s hitting up FHA loans again. Here’s a break-down of the changes:

Big FHA changes this year in 2013!

Buying a Home with only 3.5% down-payment

I run into a lot of folks who think they have to amass a huge down-payment in order to buy a home.  Nothing could be further from the truth.  With an FHA loan, you can put as little as 3.5% down – and with conventional you can put down as little as 5% if your credit is decent.  Take a look at how reasonable that number is relative to purchase price:

Purchase Price     3.5% Down

$150,000                  $5,250 down

$200,000                 $7,000 down

$250,000                  $8,750 down

$300,000                 $10,500 down

$350,000                 $12,250 down

$400,000                 $14,000 down

$450,000                 $15,750 down

$500,000                 $17,500 down

$550,000                 $19,250 down

$600,000                $21,000 down

$650,000                 $22,750 down

$700,000                 $24,500 down

$750,000                 $26,250 down

Think about that.  That gives you a lot of purchasing power!  You can even use gift funds towards the down-payment and non-occupying co-borrowers to qualify for the loan…  If you’ve been sitting on the sidelines because you don’t think you have enough saved up for a down-payment, think again.  There are many affordable options to consider.

Buying a Home with only 3.5% down-payment