FHA – FHA lowered the monthly mortgage insurance premium (MIP) by 30 BP!
This is inspiring news for FHA buyers who need payment help. The reduction means a drop from .85 BP per month to .55 BP per month for most scenarios – those putting minimum down on loans below $726,200. Effective March 20th , this move is effective immediately for any new FHA buyers. For example, on a $400,000 loan this drops the monthly MIP from $283.33/mo. down to $183.33/mo.
FHA buyers usually need a low down payment (3.5% minimum) and can often combine other grant programs to reduce their down payment further. FHA is also more lenient with credit, unconventional credit, and other tougher situations.
VA News … a modest reduction in the VA Funding fee by 15 BP’s effective for loans closed after April 7, 2023. For example a veteran buying with 0 down with the upfront VA Funding fee has been 2.3% (3.6% for subsequent use). This has now been reduced to 2.15% and 3.3% respectively. For disabled veterans the VA Funding Fee will continue to be waived.
Unsure if you qualify for FHA or VA mortgage loans? Reach out to us for a list of reputable, local lenders who specialize in these programs.