FHA Lending Changes are coming in April and also again in June.
Another reason to think about getting off the fence and purchasing a home before spring.
Here is a short synopsis of upcoming changes. See below for the details. Basically, the main impacts will be as follows for most transactions you will encounter (30 year fixed FHA loans):
1.for ALL case numbers assigned on or after April 1,2013, the annual MIP increases from 1.25% to 1.35% --on a $ 200,000 loan, for example, this will increase the monthly MI payment from $ 208.33 to $ 225.00
2. for ALL FHA 30 year fixed rate loans with a case number assigned on or after June 3,2013 that has less than a 5% down payment,-- in other words, most of them – the monthly MIP will be charged for the entire term of the loan.
Just remember most of us do not stay in you home for 30 years, also you may be able to refinace you loan sometime down the road.
Please contact me if you have more questions or if you need help finding a good lender before the changes take affect.