This is no April Fool's joke.
Home shoppers desiring to utilize FHA as their qualifying home financing vehicle and certain FHA refinance candidates will have to pay a little more after April 1, 2013.
Consistent with FHA’s ongoing efforts to strengthen the Mutual Mortgage Insurance Fund, FHA (HUD) is increasing the annual MIP (mortgage insurance premium) on all forward mortgages except single family forward streamline refinance transactions that refinance existing FHA loans that were endorsed on or before May 31, 2009 (see ML 2012-4).
Effective Date: The section of this ML that increases the annual MIP is effective for case numbers assigned on or after April 1, 2013.
Additional changes to duration of annual MIP will go into effect June 3, 2013. More on this later, or if you would like to review the HUD Mortgagee letter 2013-04 now, click here.
If you are in Arizona or California, please feel free to contact me for a mortgage review and beat the increase.
Until Next Time,
Craig Turley
