Information provided by Lori Utley of Guild Mortgage
Good News for Home Buyers
FHA Reduces Annual MIP RatesHUD recently announced a reduction to the Annual MIP rate for loans with terms greater than 15 years, lowering the annual premium by 50 basis points (.50%). These changes are effective for FHA case numbers assigned on or after January 26th, 2015.
What does this mean for home buyers?
With this update, FHA has made it less expensive for buyers to obtain financing up to 96.5% loan-to-value. This is great news, as FHA remains the most flexible program for buyers with less than a 5 percent down payment. With our expanded guidelines, we are able to help buyers with a FICO score as low as 580.