What does this mean? FHA buyers will find mortgage insurance premiums competitive with conventional financing and once again makes FHA loans more desirable than 97% conventional options in many cases. Below is an example of monthly savings in the FHA Monthly Mortgage Insurance Premium (MMIP) for a $200,000, $300,000, $400,000 and $500,000 purchase price and an FHA loan with a 3.5% down payment:
Purchase Current FHA MMIP MONTHLY
Price FHA MMI After 1/26/15 SAVINGS
$200,000 $215.31 $135.56 $79.75
$300,000 $322.96 $203.35 $119.61
$400,000 $430.62 $271.13 $159.49
$500,000 $538.27 $338.91 $199.36
Why go FHA? FHA has less restrictive credit standards than conventional financing and many attractive attributes such as:
•Minimum down payment of 3.5%
•All down payment and closing costs may be gifts
•Lower FICO score requirements
•Shorter Short Sale, Foreclosure and Bankruptcy wait times before reentering a mortgage
•Competitive interest rates and now...
•LOWER ANNUAL MORTGAGE INSURANCE!
If you are a FHA buyer that wants to purchase a multi-family property but the numbers don't make sense due to the annual mortgage insurance premium? Give me a call today and we will rework the numbers with tomorrow's updated premiums. Or if you are an FHA buyer who purchased a home in the last two years, I can help you get refinance and reduce your annual mortgage insurance.
I am a Realtor with Pacific Sotheby’s and my team will and I will work around the schedule of my clients including evening and weekends. If you or anyone you know has financing needs or questions, please give me a call. It would be my pleasure!
Gisela N Sanchez (619)254-6066