New FHA Down payment, MIP Requirements for Spring 2013


Going forward, the FHA will disallow the removal of MIP throughout the life of a loan, if the loan’s starting loan balance is higher than 90% of its appraised value. This is true for purchases and refinances.

For loans in which the loan-to-value begins at 90 percent or less, mortgage insurance premiums must be paid for 11 years. This change goes into effect June 3, 2013.

Furthermore, the Federal Housing Administration will announce higher down payment requirements for jumbo FHA loans, increasing the minimum from 3.5 percent to 5 percent or more.

Article The Mortgage Reports By Dan Green

HUD came out with three major changes for FHA this week March 2012

This change will make a difference of $11.49 per month on an $100,000 sales price with 3.5% down, 30 year note.  

So call your current clients that are going FHA and get those contracts executed on or before March 30. 

Change #2-  Disputed Accounts Must be Paid if over Cumulative $1000- Major Change

If the borrower has individual or multiple disputed credit accounts or collections with singular or cumulative balances equal to or greater than $1,000, the accounts must be resolved (e.g. payment arrangements with a minimum three months of verified payments made as agreed) or paid in full, prior to, or at the time of closing.  The lender must obtain documentation supporting the payment arrangements or that the debt has been paid off.  The payments arranged for the accounts must be included in the calculation of the borrower


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