FHA is set to drop the monthly mortgage insurance factor from 1.35% to .85 % on January 26th. What does this mean to the FHA consumer? A $200,000 mortgage under the 1.35% factor would have monthly mortgage insurance of $225/mo. With the 0.85% factor the monthly MI will be $141.67/mo. That is a saving of $116.67/month, this will help people who did not qualify before to qualify now, or to bump up their maximum qualifying amount by $20-30k. Good news for the housing market!
Here’s a helpful PDF download from the Federal Housing Finance Agency (FHFA) which outlines some new guildes specifically for Fannie Mae and Freddie Mac borrowers. These new guidelines will go into effect on November 1st, so if you’re facing foreclosure and need to know about your Short Sale options, you’ve got to check it out! Continue reading