FHA MIP premiums increase April 18, 2011

FHA Annual Mortgage Insurance Premiums--paid monthly--increase .25% on April 18. That is increase of approximately $21 a month per $100,000 in loan amount.  Note that MIP is required on all FHA loans regardless of down payment or loan-to-value.

 Although FHA financing is more costly then Conventional financing (AKA Conforming, Fannie Mae, Freddie Mac), FHA financing allows some qualifing situations that Conventional loans will not - FHA appproval guidelines allow:

• 3.5% down payment primary residence purchase loans -- all gift from immediate relative OK
• A non-occupant co-borrowers income may be used to qualify (i.e., parents)
• A borrower may refinanance to consolidate a first and second and that second is not purchase money second, but is a HELOC "seasoned" for 12 months with no more than $1000 accumulated draws in the past 12 months
• Cash-out refinance loans up to 85% of home value
• A Borrower's prospective new job income may be used in qualifying if the new job start date is within 60 days of closing and the borrower has a fully executed employment contract
• One borrower has no credit score but other borrower (including non-occupant co-borrower) has a credit score(s)
• Allows higher debt ratios than conventional (with compensating factors)
• Borrower(s) is currently in a Chapter 13 Bankruptcy -- OK.
• Is avaiable as High Balance FHA loan amounts up to $729,750 here in the Bay Area
• 15 Year Fixed, 30 Year Fixed, and Fully Amortized ARM's are available with FHA

Visit my Finance Page if you would like to recieve a quote for a FHA loan.