Uncategorized February 24, 2023

FHA & VA News!!

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.