Increase in Upfront Premiums for FHA Mortgage Insurance for Minnesota Home Loans
Posted: January 25th, 2010 | Author: admin | Filed under: FHA, Purchase Loans, Refinance Loans | No Comments »This is a letter copy and pasted from HUD.
w.hud.gov espanol.hud.gov
MORTGAGEE LETTER 2010-02
TO: ALL APPROVED MORTGAGEES
SUBJECT: Increase in Upfront Premiums for FHA Mortgage Insurance
January 21, 2010 Effective for FHA loans for which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.
Programs Covered by Insurance Premiums Shown Below
The upfront and annual premiums and the requirements described in this Mortgagee Letter apply to all mortgages insured under FHA’s Single Family Insurance Programs except those listed below:
- Title I
- Home Equity Conversion Mortgages (HECMs)
- Hope for Homeowners (H4H)
- Section 247 (Hawaiian Homelands)
- Section 248 (Indian Reservations),
- Section 223(e) (declining neighborhoods)
- Section 238(c) (Military Impact areas in Georgia and New York)
Upfront Premiums
FHA will charge an upfront premium in an amount equal to the following percentages of the mortgage:
Purchase Money Mortgages and Full-Credit Qualifying Refinances = 2.25 percent
Streamline Refinances (all types) = 2.25 percent
HOPE for Homeowners (Delinquent Mortgagors) = 2.00 percent
Home Equity Conversion Mortgages = 2.00 percent
2
Annual Premiums
Annual premiums will not change at this time.
| For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule: LTV | Annual for Loans >15 Years | LTV | Annual for Loans < 15 Years |
| < 95 | 50 BPS | < 90 | -None- |
| > 95 | 55 BPS | > 90 | 25 BPS |
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