As of April 5 2010, the great financing that FHA offers became just a little more expensive. Still great financing, though, rest assured.
The Up Front Mortgage Insurance premium, or Up Front MIP, is the part of FHA’s Mortgage Insurance that is, in nearly every case, rolled into the loan amount. The other part of the mortgage insurance is paid monthly as part of the mortgage payment. That Up Front MIP went from 1.75% of the loan amount to 2.25%.
To you, that means that if you were buying a home and financing a $200,000 loan, then the Up Front MIP was $3500, for a loan amount of 203,500.
Now, at 2.25%, the same $200,000 base loan amount will carry an Up Front MIP of $4500, for a total loan amount of $204,500. An addition of $1000 in fees that go to HUD on your 30 year fixed rate Atlanta FHA loan.
It is still a good deal, in that it takes much less down payment, and the monthly Mortgage Insurance is much less than a comparable conventional loan.
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