These changes were effective April 18, 2011 ?(for case numbers assigned on or after this date). The Upfront Mortgage Insurance remains at 1.00%. The Annual Insurance Premium will increase from .90% to 1.15% for LTV's greater than 95% on 30 yr loans. The Annual Insurance Premium will increase from .85% to 1.10% for LTV's less than or equal to 95% on 30 yr loans. The Annual Insurance Premium will increase from .25% to .50% for LTV's greater than 90% on 15 yr loans. The Annual Insurance Premium will increase from 0% to .25% for LTV's less than or equal to 90% on 15 yr loans. In other words: on a $100,000 FHA 30 year fixed this equals a $21 higher monthly payment for homebuyers.
On April 18, 2011 HUD will increase the Annual Mortgage Insurance Premium by 25 basis points. This will increase the monthly payment of FHA borrowers whose case numbers are assigned on or after April 18, 2011.
Last week saw the year finish on a high note for the housing market with Pending Home Sales for November coming in UP 3.5%, after this figure was expected to be down slightly for the month. This reading measures homes under contract, and therefore should point to an increase in closings in the January-February time frame.
FHA announces extension of condominium project approvals with an expiration date of December 7, 2010. The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time while recognizing current housing market conditions.