Buying a Home With Less Than 20% Down? Might Want To Buy Now!

FHA Mortgage Insurance Premium Changes

A new premium structure for FHA-insured single family mortgage loans was recently announced.* Beginning April 1, 2012, all FHA mortgage applicants will be subject to new fees. The up-front mortgage insurance premium, which is currently 1 percent of the loan amount and can be financed into a borrower’s loan, will increase to 1.75 percent of the loan amount. The FHA estimates that the increase to the upfront premium only will cost new borrowers an average of approximately $5 more per month.

In addition, the annual mortgage insurance premium that currently stands at 1.15 percent of the loan amount (for loans with more than 95% LTV) will increase to 1.25 percent, for loans up to $625,000. Additional increases are planned for loans above $625,000 effective June 1, 2012.

Taken together, these premium changes will enable the FHA to increase revenues at a time that is critical to its ongoing ability to remain a valuable option for low- to moderate-income borrowers.

If you have been contemplating purchasing a home with less than 20% down, You may want to fast track that purchase now to avoid possible increases in MI (Mortgage Insurance) fees.  Plus Interest rates are incredible right now, home prices are more reasonable and really - What are you waiting for?

Call your Bank or Mortgage Broker today to get pre-qualified for a home loan.  Then call a Professional Realtor to find that perfect home!  Or call me and I will put you in touch with several local lenders.  


*Information provided is based on the initial FHA announcement made February 27, 2012, and is subject to change. The FHA will publish the final mortgagee letter on the matter very shortly.

Buying A Home That Needs Work? You May Have Financing Options!

Did you know that if you are thinking of purchasing a home and it is in need of modernization, repairs or rehab, that you may be able to finance some of that cost in your new loan? Yep -

This is why it is very important for you to talk to a lender BEFORE you start looking at houses -

FHA has 2 programs designed just for this purpose - So, it's important to find an lender that is an FHA Approved Lender and has experience with these programs.

Like any other mortgage program, there are eligibility requirements and limits, but taking that first step in finding the right lender, will make the process manageable for you.

You can find an FHA Approved Lender by going to the HUD website. Or click here for the list of Approved Lenders In Rockingham County, New Hampshire . If you go to the website itself, just enter your state, and county and make sure the bottom box (203k) is checked, then press search and it will return the list of Approved Lenders in your area. For the list of Approved Lenders in the county of Rockingham, NH for example one of the approved lenders is Blue Water Mortgage. I know from experience with past clients that this lender is not only approved, but they are experienced and a pleasure to do business with. But of course who you talk to is up to you - I suggest that you talk to 2 or 3 lenders and find the one that you are comfortable with and is patient with you.

If you would like to find out more about these two programs I've included the links that will give you more detail. This is not the type of program that just anyone should get into as it's going to require work on your part - Also aligning yourself with an Experienced, professional Realtor is also recommended -

Section 203(k) Rehab program
203(k) Streamlined
(make sure to read the Hud Mortgage Letter 2005-50 for more information and you'll find the link on the page).

In my Next post I will fill you in on the new Good Faith Estimate requirements.

Debbie Mae
And as always, regardless of where you live, if you are looking for an experienced, professional Realtor to assist you in your home buying or home selling process, I can assist you in finding just the right person (regardless if you are in New Hampshire or California).