FHA Up Front Mortgage Insurance Premium (UFMIP) will officially change from 1.75% to 2.25% effective with FHA case numbers issued after April 5, 2010 according to the FHA Mortgagee Letter 2010-2 issued today. This will be a change in the amount of the premium collected up front but not in the monthly amount at this time. FHA will be asking for an increase in the monthly premium but that must be posted in the Federal Register first and probably will not take effect until Spring or early Summer.
This change in UFMIP was done to assist FHA in statutory reserve requirements that have been getting worse due to the large percentage of the purchase loans now going to FHA that diluted their reserves. Although this will have an effect on buyers, the fact that the UFMIP is financed will not make a difference in the amount of money a buyer will have to bring to the table to close.
If you have questions about qualifying for a loan and want to get the best deal before they go up, give me (Fred Chamberlin) a call at 541-342-7576/541-221-3455 cell or e-mail me for more information. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. I am here to help you and answer your questions.
