MIP Archives - Indiana 203K Mortgages

ACT NOW If You Are Considering An FHA Mortgage!

Change is a comin’! In a recent release from the U.S. Department of Housing and Urban Development, the subject line sums it up: “Revision of FHA policies concerning cancellation of the annual Mortgage Insurance Premium (MIP) and increase to the annual MIP”. The intention of these changes is to continue to strengthen the Mutual Mortgage Insurance Fund. To sum it up, there are 2 parts to the change that will affect consumers. Part 1: FHA Mortgage Insurance Premium Changes The FHA is an insurer of mortgage loans and, by law, it is required to maintain a 2% reserve in its Mutual Mortgage Insurance (MMI) fund. Currently, because of bad loans made last decade, the FHA’s reserves are -1.44 percent. In an effort to rebuild the MMI, therefore, the...

Great News Indiana! FHA Lowers Mortgage Insurance Premiums For Some Refinancing!

Great News Indiana! FHA Lowers Mortgage Insurance Premiums For Some Refinancing! The Federal Housing Administration will lower mortgage insurance premiums for borrowers who refinance their loans as part of President Barack Obama’s plan to improve the housing market. The FHA will reduce up-front premiums to 0.01 percent of total loan amount from 1 percent under the plan announced by Obama. Annual fees will be cut to 0.55 percent from 1.15 percent for borrowers with FHA loans made before June 1, 2009, according to a fact sheet distributed by the Obama administration. “I’m not one of those people who thinks we should just sit by and wait for the housing market to hit bottom,” Obama said at a recent news conference. “There are real...