Effective with new FHA case number assignments on or after July 14, 2008, FHA will implement risk-based mortgage insurance premiums on one to four unit single family mortgages.
What does this mean?
Previously FHA put every borrower in the same category and charged a 1.5% upfront mortgage insurance fee and then a .5% (.25% for a 15year loan) per year premium.
Not they have changed their premiums to a risk based premium schedule. The premium grid is based solely on the prospective borrower's credit bureau score and the loan-to-value ratio.
The premium matrix is shown below:
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FHA Single Family Mortgage Insurance Upfront and Annual Mortgage Insurance Premiums (Loan Terms > 15 years) Effective as of July 14, 2008 |
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All premiums are specified in basis points (0.01%)
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Decision Credit Score (FICO)
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LTV |
850-680 |
679-640 |
639-600 |
599-560 |
559-500 |
499-300 |
NON-TRADITIONAL |
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≤ 90.00 |
125/50
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125/50 |
125/50 |
150/50 |
175/50 |
175/50 |
150/50 |
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90.01-95.00 |
125/50
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125/50 |
150/50 |
175/50 |
200/50 |
n/a |
175/50 |
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> 95 |
125/55
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150/55 |
175/55 |
200/55 |
225a/55 |
n/a |
200/55 |
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a. A first-time home buyer, with HUD-approved counseling, will pay only 200 basis points for the upfront mortgage insurance premiums.
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This blog written by:
Team Newington
Sacramento Mortgage Planners
(916) 687-6868
www.SuperiorLoanTeam.com
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We are committed to operating in a professional, ethical and organized manner and are always focused on the success of our clients. Visit us online at www.SuperiorLoanTeam.com and see the difference!
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I've been waiting two years for FHA to implement this. It was inevitable. Thank you, Erin, for the chart. It's very informational.