FHA Insurance Changes and MoreTim McLaughlinAs a reminder to those who are originating FHA/VAproducts: effective immediately, there are changes to theinsurance premiums on these types of loans.The upfront premium is going down from 2.25% to1.00%, which is good. However, the annual premium isincreasing from a range of 0.50% to 0.55% up to a newrange of 0.85% to 1.55%.What does this mean? Well, it means HUD will still be avaluable outlet for all loans that fit under the FHA/VA loanstructure. Additionally, given some of the positive changes atthe independent Mortgage Insurance companies, FannieMae and Freddie Mac may become a more valuable (andbetter execution) outlet for some of the loans that can alsopotentially go conventional as well, whereas they may nothave been in the past.
FHA Insurance Changes and More
-Tim McLaughlin, VP Weichert Financial Services
As a reminder to those who are originating FHA/VA
products: effective immediately, there are changes to the
insurance premiums on these types of loans.
The upfront premium is going down from 2.25% to
1.00%, which is good. However, the annual premium is
increasing from a range of 0.50% to 0.55% up to a new
range of 0.85% to 1.55%.
What does this mean? Well, it means HUD will still be a
valuable outlet for all loans that fit under the FHA/VA loan
structure. Additionally, given some of the positive changes at
the independent Mortgage Insurance companies, Fannie
Mae and Freddie Mac may become a more valuable (and
better execution) outlet for some of the loans that can also
potentially go conventional as well, whereas they may not
have been in the past.
