New FHA Upfront MIP on Oct. 4, 2010
FHA Homebuyers will see the new FHA Upfront MIP go down as of October 4, 2010.
Over the past 2-3 months, Congress has taken action and passed H.R. 5981. This bill gives FHA the authority to adjust it's annual mortgage insurance premium yielding approximately $300 million per month to the FHA Mutual Mortgage Insurance Fund at a time when its reserves are perilously low. As a result, FHA has decided that effectively on October 4, 2010, the UFMIP (Upfront Mortgage Insurance Premium) and the Monthly Insurance Premium will change in order to meet the demands of future FHA Homeowners.
What does this mean for you and how does it affect your ability to qualify for an FHA Loan?
To learn More about (click here) FHA MIP Information