Important update to this information has been added (in bold)...
Sometime in 2013, FHA will make more changes in regards to mortgage insurance. Not surprisingly, these changes will not benefit you. In a nutshell, here's what's going to happen:
1) Annual mortgage insurance premiums will rise another 10 basis points, in most cases to 1.3%. On a $150,000 loan, that equates to a monthly MI payment of $162.50. Ouch! UPDATE: This will take effect for FHA case #'s ordered on or after April 1, 2013.
2) Mortgage insurance will be mandatory for the entire time you have the loan. Another ouch! Currently, the minimum is 5 years. UPDATE: This has been changed to read life of the loan or 11 years, whichever comes first. This will take effect for FHA case #'s ordered on or after June 3, 2013.
For more information, check out this article from HousingWire.com:
If you're in the market for an FHA loan, you should get moving soon. There has been no date set for these changes but I assume they'll happen sooner rather than later.
If you have any questions, please don't hesitate to contact me.