Loans By Kathy: Did you hear? FHA is making changes in April

Did you hear? FHA is making changes in April

Yes, they are changing again!  This change goes into effect on FHA case numbers ordered on April 9, 2012.  Buyers should consider this if they are ready, willing and able to purchase now. 

The change is the Upfront MIP is going to 1.75% from 1% of the loan amount.  As an example, a $200,000 loan will now have a UFMIP payment of $3500 vs. $2000 now.

I can tell you from past experience, waiting until the last minute is NOT a good idea.  The system was so bogged down,  it took much longer for the numbers to issue.  You don't want to miss it by a day or two.


Here are the other changes:

UFMIP will increase from 1% to 1.75% regardless of Term or LTV

Term > 15 Years


Base Loan Amount



Annual MIP

Limited only by county




Limited only by county

<= 95.0%












Term<= 15 Years with LTV > 78%





Limited only by county




Limited only by county








Loans with terms of 15 years or less are exempt from Annual MIP


For more information about how these changes will impact the pre-qualifications, please call you licensed mortgage professional.





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Kathy Sheehan Senior Loan Officer






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 5 commentsKathy Sheehan • March 07 2012 01:42PM


Kathy -  Seems like each day we are dealing with more change in the world of real estate.  Thanks for the info and great job on the charts my friend.  Make it a great evening!

Posted by John McCormack, CRS, Honesty, Integrity, Results, Experienced. HIRE Me! (Albuquerque Homes Realty) about 7 years ago


Changing again already? Thanks for the info.

Featured in the Group "Whacked!!!"

Posted by Richard Weisser, Richard Weisser Retired Real Estate Professional (Richard Weisser Realty) about 7 years ago

John, I have learned over the last few years that I need to be adaptable and flexible, because everything changes at a moments notice!


Richard, yes they are!  Thanks for the Feature!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 7 years ago

I agree with Richard..  well sort of.. THIS IS WHACKED!!! LOL... going up is never a good thing...

Posted by Sheila Newton Team Anderson & Greenville SC, Selling the Upstate since 1989 (Berkshire Hathaway HomeServices - C. Dan Joyner) about 7 years ago

Sheila, that is one way to put it!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 7 years ago