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Bill Traylor's Blog

By Bill Traylor | Agent in Cumming, GA

News About FHA Loans


Starting April 1, FHA's annual mortgage insurance premiums for most new loans will jump by one-tenth of a percentage point (10 basis points in lending parlance). This is on top of two previous increases since 2011. Other coming changes, but not scheduled to take effect until June 3, include: mandatory "manual" underwriting of applications by borrowers whose total household debt-to-income ratios exceed 43 percent and who have credit scores below 620; and mandatory 5 percent minimum down payments on FHA loans above $625,500 in high-cost areas such as California, metropolitan Washington, D.C., and others.
FHA also announced that as of June 3, it is rescinding its popular policy of canceling mortgage insurance premium charges for borrowers once their loan balance declines to 78 percent of the original amount. This will force FHA customers to pay premiums for as long as they keep their loans, and is in stark contrast to the private mortgage insurance market, where homeowners can request cancellation of premium payments once their loans hit the 78 percent mark.

If you are looking for assistance with financing, please let me know. I can refer you to qualified lenders.

www.billtraylor.harrynorman.com

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