Loans By Kathy: More FHA Changes Scheduled for April 1, 2012 in Georgia

More FHA Changes Scheduled for April 1, 2012 in Georgia

Yes, you read that headline correctly, more FHA changes are scheduled for April 1, 2012.  As a real estate agent, it is important for you to be aware of how this going to impact your buyers using the FHA financing program. 

Please keep in mind, these will apply to all programs, FHA purchases, FHA 203(k) rehab loan, and streamline refinances.

So, here are the changes in a nice little chart for you.   These are based on FHA loans for the state of Georgia based on county loan limits.  In this example, I will assume the minimum down payment of 3.5%

The financed mortgage insurance premium (UFMIP) will be now be 1.75% and the monthly payment will be raised to 1.25% annualized.

Let's break this down into specific numbers for a $200,000 loan amount:

 

Current Program

 

Changes 4/1/12

       

UFMIP

$2,000.00

 

$3,500.00

Monthly MIP

$191.67

 

$208.33

So, under these new changes, the new loan amount will be $1500 higher and the buyer will be paying $16.66.  A slighter higher loan amount and increase in monthly payment will reduce the buyer's pre-qualification.

For more specifics, please give me a call.

 

 

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Kathy Sheehan Senior Loan Officer

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770.634.4021

F:

404.745.8060

 

Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988


 

 

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

Comment balloon 3 commentsKathy Sheehan • March 04 2012 05:07PM

Comments

That's a huge increase in the upfront fee. It kind of seems counter intuitive to be raising the costs borrowing so much when the housing market is still trying to gain some ground. Seems nuts to me.

Have an AWESOME evening!

Posted by Michael S. Bolton, MN Appraiser (Michael S. Bolton,Inc.) almost 6 years ago

Michael, I think making this change is a bad idea, but HUD forgot to call me before announcing the changes.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 6 years ago

Disappointed.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) over 4 years ago

Participate