FHA monthly mortgage insurance is going up.
Staring on April 18, 2011, the amount you pay for monthly mortgage insurance on an FHA loan is going up by .25%.
The box below shows how this increase will impact a typical FHA Loan.
| Current FHA Monthly Mortgage Insurance | FHA Monthly Mortgage Insurance After 4/18/2011 | |
| Sales Price | $250,000.00 | $250,000.00 |
| Loan Amount with 3.5% down | $241,250.00 | $241,250.00 |
| FHA Monthly Mortgage Insurance Payment | $180.94 | $231.20 |
| Difference In Payment | $50.26 more per month! |
FHA Buy And Bail Guideline Update: January 24, 2011.
How lenders interpret FHA guidelines.
On September 19, 2008, FHA issued MORTGAGEE LETTER 2008-25 which can be viewed here .
It is also listed on this site here.
The purpose of this letter was to address what is commonly referred to as a Buy and Bail transaction. This is where a consumer decides to rent their current primary home and buy a new home. Some homeowners, given the rising price of fuel, are relocating to homes nearer their employment, or are taking advantage of other home buying opportunities like buying a home of similar size for less than what they owe on their current mortgage.
As a result of some home-buyers providing misleading or outright fraudulent information (like a fake lease agreement) regarding the rental income of the property being vacated to qualify for the new mortgage, FHA is instituting underwriting guidance designed to assure that the home-buyer can make payments on the full debt service of both mortgages.
Consequently, beginning with case number assignments on or after the date of this Mortgagee Letter and until further notice, the underwriting analysis may not consider any rental income from the property being vacated except under circumstances described in this Mortgagee Letter, *see below for these exceptions*.
The exclusion of rental income from property being vacated is being instituted on a temporary basis. This will assure that a homeowner either has sufficient income to make both mortgage payments without any rental income or has an equity position not likely to result in defaulting on the mortgage on the property being vacated (rented out). In either case, this guidance is directed to preventing the practice known as “Buy and Bail” where the homebuyer purchases, for example, a more affordable dwelling with the intention to cease making payments on the previous mortgage. Although the property being vacated will not have a mortgage insured by FHA, surrounding properties may and, thus, FHA may be indirectly negatively affected should that property result in a foreclosure.
* These are the exceptions directly from FHA*.
Exceptions:
Rental income on the property being vacated, reduced by the appropriate vacancy factor as determined by the jurisdictional FHA Homeownership Center (see http://www.hud.gov/offices/hsg/sfh/ref/sfh2-21u.cfm) may be considered in the underwriting analysis under the following circumstances:
This is where we get in to the problem of lender interpretation of FHA’s Buy and Bail guidelines.
Some lenders read the letter’s exceptions and see it as FHA telling them that you have to meet BOTH requirements and others will look at it and say you have to meet one or the other.
Here is a great example of this very issue: Trulia
In the linked thread above you will see at least two lenders going back and forth citing opinions and actual lender guidelines based on the lender’s interpretation of FHA’s Buy and Bail guidelines. I have at least two different lenders that view this letter as one or the other.
Here is the point: Make sure that the lender you’re dealing with understands your situation and if they say no, DON”T GIVE UP. Try to find a loan officer that knows their underwriters and the way the underwriters interpret the FHA Buy and Bail guidelines.
Contact us if you have any questions by filling out the form below.
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Today’s FHA Jumbo Mortgage Rates.
November 3, 2010
*All FHA Jumbo Mortgage Rates are based on a $700,000.00 loan amount *
*Please note that FHA Jumbo Mortgage Rates are subject to change, sometimes several times per day.*
*We now have credit score tier specific FHA Jumbo Mortgage Rates!*
*All FHA Jumbo Mortgage Rates posted are based on 30 day locks. *
*Please note that the FHA Jumbo Mortgage Rates posted are subject to adjustments for the following criteria*
1) Loans amounts under $100,000.00.
2) State specific adjustments.
FHA Jumbo Mortgage 30 year fixed – Credit Scores 620 to 639
Not Available
FHA Jumbo Mortgage 30 year fixed – Credit Scores 640 to 659
With 1.5 points – 4.125%! – APR of 5.249%
With 0 points – 4.25%! with a credit of 1.5% of your loan
amount for closing costs!– APR of 5.237%
FHA Jumbo Mortgage30 year fixed – Credit Scores 660 to 679
With 1.5 points – 4.125%! – APR of 5.249%
With 0 points – 4.25%! with a credit of 1.5% of your loan
amount for closing costs!– APR of 5.237%
FHA Jumbo Mortgage 30 year fixed – Credit Scores 680 to 700
With 1.25 points – 4.25%! – APR of 5.266%
With 0 points – 4.25%! with a credit of 1.78% of your loan
amount for closing costs!– APR of 5.237%
FHA Jumbo Mortgage 30 year fixed – Credit Scores 720+
With 1.125 points – 4.125%! – APR of 5.266%
With 0 points – 4.25%! with a credit of 1.905% of your loan
amount for closing costs!– APR of 5.237%
FHA Jumbo Mortgage 5/1 ARM with a 1.75% margin and 1/1/5 Caps
FHA Jumbo Mortgage 5/1 ARM (1/1/5 Caps) – Credit Scores 620 to 639
Not available
FHA Jumbo Mortgage5/1 ARM (1/1/5 Caps) – Credit Scores 640 to 659
With 2.0 points – 3.0%! – APR of 3.506%
With 1 point – 3.5%! – APR of 3.634%
With 0 point – 4.250%! – APR of 3.912%
FHA Jumbo Mortgage 5/1 ARM (1/1/5 Caps) – Credit Scores 660 to 679
With 2.0 points – 3.0%! – APR of 3.506%
With 1 point – 3.5%! – APR of 3.634%
With 0 point – 4.250%! – APR of 3.912%
FHA Jumbo Mortgage 5/1 ARM (1/1/5 Caps) – Credit Scores 680-700
With 2.0 points – 2.875%! – APR of 3.457%
With 1 point – 3.375%! – APR of 3.587%
With 0 point – 4.125%! – APR of 3.848%
FHA Jumbo Mortgage 5/1 ARM (1/1/5 Caps) – Credit Scores 720+
With 1.5 points – 2.75%! – APR of 3.409%
With 1 point – 3.250%! – APR of 3.531%
With 0 point – 4.0%! – APR of 3.783%
Click here for your free customized quote!
Compare Today’s FHA Rates with Today’s USDA Rates and Today’s VA Rates
Information provided is solely for use by licensed real estate agents, builders and consumer use but not for distribution. Rates and APR are accurate as of date shown above and subject to change without notice. *APR and rates are based on $700,000 loan amount with 3.5% down and 30 day rate locks.
Today’s FHA Mortgage Rates.
November 3, 2010
*Please note that FHA Rate are subject to change, sometimes several times per day.*
*We now have credit score tier specific FHA mortgage Rate!*
*All FHA Rates posted are based on 30 day locks. *
*Please note that the FHA Rate posted are subject to adjustments for the following criteria*
1) Loans amounts under $100,000.00.
2) State specific adjustments.
FHA 30 year fixed – Credit Scores 620 to 639
With 2.0 points – 3.75%! – APR of 4.898%
With 1.4 points – 3.875%! – APR of 5.061%
With 0 points or lender fees – 4.25%! – APR of 5.25%
FHA 30 year fixed – Credit Scores 640 to 659
With 2.0 points – 3.75%! – APR of 4.898%
With 1.4 points – 3.875%! – APR of 5.061%
With 0 points or lender fees – 4.25%! – APR of 5.25%
FHA 30 year fixed – Credit Scores 660 to 699
With 2.0 points – 3.75%! – APR of 4.898%
With 1.4 points – 3.875%! – APR of 5.061%
With 0 points or lender fees – 4.25%! – APR of 5.25%
FHA 30 year fixed – Credit Scores 740+
With 1.4 points – 3.75%! – APR of 4.875%
With 1. points – 3.875%! – APR of 4.965%
With 0 points or lender fees – 4.125%! – APR of 5.126%
FHA 15 year fixed – Credit Scores 620 to 639
With 1 point – 3.50%! – APR of 4.730%
With 0 points and a credit towards closing costs of 1 point – 4.0%! – APR of 5.078%
FHA 15 year fixed – Credit Scores 640 to 659
With 1 point – 3.50%! – APR of 4.730%
With 0 points and a credit towards closing costs of 1 point – 4.0%! – APR of 5.078%
FHA 15 year fixed – Credit Scores 660 to 699
With 1 point – 3.50%! – APR of 4.730%
With 0 points and a credit towards closing costs of 1 point – 4.0%! – APR of 5.078%
FHA 15 year fixed – Credit Scores 740+
With 0.60 point – 3.50%! – APR of 4.730%
With 0 points and a credit towards closing costs of 1 point – 4.0%! – APR of 5.078%
FHA 3/1 ARM – 2.0% Margin and 1/1/5 Caps
FHA 3/1 ARM- Credit Scores 620 to 639
Not Available
FHA 3/1 ARM – Credit Scores 640 to 659
With 2.0 points – 3.625%! – APR of 3.761%
With 1 point – 4.125%! – APR of 3.835%
With 0 point – 4.875%! – APR of 4.036%
FHA 3/1 ARM – Credit Scores 660 to 699
With 2.0 points – 3.375%! – APR of 3.680%
With 1 point – 3.875%! – APR of 3.754%
With 0 point – 4.625%! – APR of 3.937%
FHA 3/1 ARM – Credit Scores 740+
With 1.5 points – 3.25%! – APR of 3.597%
With 1 point – 3.625%! – APR of 3.673%
With 0 point – 4.125%! – APR of 3.747%
FHA 5/1 ARM with a 1.75% margin and 1/1/5 Caps
FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 620 to 639
With 2.0 points – 2.25%! – APR of 3.234%
With 1 point – 2.625%! – APR of 3.290%
With 0 point – 2.75%! – APR of 3.253%
FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 640 to 659
With 2.0 points – 2.25%! – APR of 3.234%
With 1 point – 2.625%! – APR of 3.290%
With 0 point – 2.75%! – APR of 3.253%
FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 660 to 679
With 2.0 points – 2.25%! – APR of 3.234%
With 1 point – 2.625%! – APR of 3.290%
With 0 point – 2.75%! – APR of 3.253%
FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 680-700
With 1.6 points – 2.25%! – APR of 3.20%
With 1 point – 2.625%! – APR of 3.290%
With 0 point – 2.75%! + a credit of .688% towards your closing costs – APR of 3.253%
FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 720+
With 1.5 points – 2.25%! – APR of 3.192%
With 1 point – 2.50%! – APR of 3.234%
With 0 point – 2.75%! + a credit of .813% towards your closing costs – APR of 3.253%
FHA 203K Streamline
30 Year Fixed
With 0 point – 5.250%! – APR of 5.882%
With 1 points – 5.00%! – APR of 5.724%
Click here for your free customized quote!
Compare Today’s FHA Rates with Today’s USDA Rates and Today’s VA Rates
Information provided is solely for use by licensed real estate agents, builders and consumer use but not for distribution. Rates and APR are accurate as of date shown above and subject to change without notice. *APR and rates are based on $200,000 loan amount with 3.5% down and 30 day rate locks.
Today’s FHA Mortgage Rates.
June 10, 2010
*Please note that FHA Rate are subject to change, sometimes several times per day.*
*We now have credit score tier specific FHA mortgage Rate!*
*All FHA Rates posted are based on 30 day locks. *
*Please note that the FHA Rate posted are subject to adjustments for the following criteria*
1) Loans amounts under $100,000.00.
2) State specific adjustments.
FHA 30 year fixed – Credit Scores 620 to 639
With 1.125points – 4.375%! – APR of 5.282%
With 0 points – 4.625%! – APR of 5.44%
FHA 30 year fixed – Credit Scores 640 to 659
With 1.0 points – 4.375%! – APR of 4.815%
With 0 points – 4.6250%! – APR of 5.44%
FHA 30 year fixed – Credit Scores 660 to 699
With 1.375 points – 4.250%! – APR of 5.189%
With 0 points – 4.50%! – APR of 5.317%
FHA 30 year fixed – Credit Scores 740+
With 1.0 points – 4.250%! – APR of 5.154%
With .50 points – 4.375%! – APR of 5.236%
FHA 15 year fixed – Credit Scores 620 to 639
With 0 points and a credit towards closing costs of 1.750 points – 4.25%! – APR of 5.264%
FHA 15 year fixed – Credit Scores 640 to 659
With 0 points and a credit towards closing costs of 1.75 points – 4.25%! – APR of 5.264%
With 0 points and a credit towards closing costs of 2.125 points – 4.375%! – APR of 5.391%
FHA 15 year fixed – Credit Scores 660 to 699
With 0 points and a credit towards closing costs of 1.75 points – 4.25%! – APR of 5.264%
With 0 points and a credit towards closing costs of 2.125 points – 4.375%! – APR of 5.391%
FHA 15 year fixed – Credit Scores 740+
With 0 points and a credit towards closing costs of 1.75 points – 4.25%! – APR of 5.264%
With 0 points and a credit towards closing costs of 2.125 points – 4.375%! – APR of 5.391%
FHA 3/1 ARM- Credit Scores 620 to 639
With 0 points and a credit towards closing costs of 1.250 points – 3.75%! – APR of 3.714%
With 0 points and a credit towards closing costs of 1.625 points – 3.875%! – APR of 3.674%
FHA 3/1 ARM – Credit Scores 640 to 659
With 0 points and a credit towards closing costs of 1.250 points – 3.75%! – APR of 3.714%
With 0 points and a credit towards closing costs of 1.625 points – 3.875%! – APR of 3.674%
FHA 3/1 ARM – Credit Scores 660 to 699
With 0 points and a credit towards closing costs of 1.250 points – 3.75%! – APR of 3.714%
With 0 points and a credit towards closing costs of 1.625 points – 3.875%! – APR of 3.674%
FHA 3/1 ARM (1/1/5 Caps)- Credit Scores 740+
With 0 points and a credit towards closing costs of 1.250 points – 3.75%! – APR of 3.714%
With 0 points and a credit towards closing costs of 1.625 points – 3.875%! – APR of 3.674%
FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 620 to 639
With 1.0 points – 3.250%! – APR of 3.708%
With 0 points – 3.50%! – APR of 3.718%
FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 640 to 659
With 1.0 points – 3.250%! – APR of 3.708%
With 0 points – 3.50%! – APR of 3.718%
FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 660 to 699
With 1.0 points – 3.250%! – APR of 3.708%
With 0 points – 3.50%! – APR of 3.718%
FHA 5/1 ARM (1/1/5 Caps) – Credit Scores 740+
With 1.0 points – 3.250%! – APR of 3.708%
With 0 points – 3.50%! – APR of 3.718%
FHA 7/1 ARM (2/2/6 Caps) – Credit Scores 620 to 639
With 0 points – 3.75%! – APR of 3.960%
FHA 7/1 ARM (2/2/6 Caps) – Credit Scores 640 to 659
With 0 points – 3.75%! – APR of 3.960%
FHA 7/1 ARM (2/2/6 Caps) – Credit Scores 660 to 699
With 0 points – 3.75%! – APR of 3.960%
FHA 7/1 ARM (2/2/6 Caps) – Credit Scores 740+
With 0 points – 3.75%! – APR of 3.960%
FHA 203K Streamline
30 Year Fixed
With 0 point – 5.250%! – APR of 5.882%
With 1 points – 5.00%! – APR of 5.724%
Click here for your free customized quote!
Compare Today’s FHA Rates with Today’s USDA Rates and Today’s VA Rates
Information provided is solely for use by licensed real estate agents, builders and consumer use but not for distribution. Rates and APR are accurate as of date shown above and subject to change without notice. *APR and rates are based on $200,000 loan amount with 3.5% down and 30 day rate locks.
