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Homebuyers Be Aware FHA MIP will cost you More Effective 10/1/08

09-08-08
Tim Bradford
Tim Bradford: Loan Officer in Cleveland, OH

Warning FHA Buyers

Interest Rates are Great Today

and

Effective 10/1/08 it will cost you more

 to purchase a home because of the changes in FHA Mortgage Insurance.

On a $150,000 FHA Loan

All buyers will pay a
 
$375.00 higher upfront premium.

Buyers with 5% or Less down will also
pay $6.25 more per month. 

When President Bush suspended the implementation of FHA's Tiered Pricing everyone was glad that he placed a One year Moratorium on the Higher MIP Premiums.   Until Mortgage Letter 2008-22 everyone was happy.   With the issuance of the Mortgage Letter the opposite is true.   Instead of coming out with Tiered Pricing, FHA increased the MIP across the board to everyone.  

If you are considering a purchase, doing it before Oct 1, 2008
will save you $$$$$$$

Realtors refer to ML 2008-22

Ask your Realtor for more Information

Note to Ohio Buyers:  3% or 4% Down Payments assistance will continue to be available if you use the Ohio First Time Buyers Program.