Thinking about buying a house with an FHA Mortgage?

Well, here's another reason to "Get off that fence", "Pull the trigger", "make the leap" and act RIGHT NOW. 


                                                                                    The Federal Housing Administration (FHA) has changed it’s policies regarding the insurance fund and are to take effect on June 3rd 2013.

The FHA recognizes most, if not everyone, doesn’t have 5, 10 or 20 percent to put down on a home. They say if a buyer meets their guidelines, they're willing to insure the loan. The buyer must pay a monthly mortgage insurance premium (MIP) until the loan reaches 78 percent of the original loan amount. That is until June 3rd.

Beginning June 3, borrowers who apply for FHA insured mortgages will pay for mortgage insurance for the life of their loans. FOR THE LIFE OF THE LOAN!!

Currently the rule says a borrower must pay the insurance for a minimum 5 years and until the loan reaches 78 percent of the original loan amount.

Typically once the 5 years, 78 percent is reached, the mortgage payment is lower and the cost of paying MIP is no longer part of the mortgage. At this point your monthly mortgage payment will be less. Everyone likes a lower payment, right?

Well, come June 3rd, MIP will no longer fall off after 5 years. It will be permanent for any FHA insured borrower who puts down less than or equal to 10%

If you’re on the fence about buying or in the process of choosing a home, I’d say get under contract before June 3rd. For loans with FHA case numbers assigned on or after June 3, 2013, FHA
will collect the annual MIP for the maximum duration permitted under statute. 12 U.S.C. § 1709(c)(2)(B).

For information regarding your financial outlook and what best works for you, I highly recommend, L.A. Mortgage Company.

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