FHA rules...they are a changin'

FHA Annual Mortgage Insurance Premiums will Increase this April
In a statement released yesterday, FHA Commissioner David H. Stevens announced a new premium structure for FHA-insured mortgage loans increasing its annual mortgage insurance premium by a quarter a percentage point (.25) on all 30 and 15 year loans. The upfront MIP will remain unchanged at 1.0 percent. Commissioner Stevens stated:
“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said Stevens. “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

What does all of this mean to you, the borrower? Well, the upfront mortgage insurance stays at 1% of the loan amount, which is financed into your loan. The monthly (what they call annual mortgage insurance premium, which you pay in monthly installments as part of your payment) will increase by 25 basis points on a 30 year loan. The change happens on a 15 year loan as well, but how many people actually use a 15 year FHA loan? So, on a $200,000 loan, your monthly payment goes up almost $50. Doesn't seem like much, but for a lot of people this could make the difference between qualifying for loan or not qualifying because of the effects on their debt-to-income ratio.

Do you think it will make a difference for you? Then let's get you pre-qualified and get ahold of your Realtor and get you in that house you've wanted.

High credit score, but lower down payment?

Conventional Loan with 3% Down Payment Option
For home buyers who have high credit scores but need a low down payment loan option, Axiom Financial offers a conventional mortgage program with a 3% down payment. Check out this link for more information.

http://www.axiomfinancial.com/new-low-down-on-conventional-loan.htm

For a long time, lenders have only had the option of FHA for a "low down payment option." As of now, Axiom has a low down payment option for those who don't want an FHA loan to purchase. Unlike FHA, when 20% equity is reached, the monthly mortgage insurance payment goes away (FHA requires you to pay for at least 5 years, even if you have a large lump sum that drops you down to under 80%). There is even an option for SELLER PAID mortgage insurance if you qualify.

Give me a call and we'll discuss if this option is right for you.