New FHA Guidelines: Lower Rates

Hallelujah, Mortgage Insurance Premiums have been lowered for all new loans for the first time since 2001!  

Over the past ten years, lack of regulation allowed many bad loans to flood the market. This caused the agency’s funds to deplete so they were forced to raise their premiums to counteract losses.  In the past five years alone, MIPs increased six different times. That’s more than once a year! However, new studies show loan performance has improved and home values have risen. In turn, the FHA guidelines have changed and lowered MIPs for the first time, and we strongly recommend for you to capitalize on this.

new-fha-guidelines-lower-ratesThe FHA has come a long way in the last 80 years, starting out with 50% down payment requirements and high interest rates, but now there are many more opportunities available for potential home-buyers.  Today, the rates are much lower and homeowners can receive an upfront MIP refund by refinancing.

Annual MIP rates vary depending upon the details of your loan. Simply put, your loan term, your loan-to-value ratio, and your loan amount determine your annual MIP, which currently ranges from 0.45% to 1.05%.

The best part? These new rates are valid for all FHA loans.  With these new changes, potential borrowers could save a lot of money at closing. So what are you waiting for? Speak with one of our FHA loan experts today by calling 800-245-3279 or emailing