HUD and FHA made a huge announcement this week

The Department of HUD and FHA made a huge announcement this week.  Effective with case numbers assigned April 1st and later, there will be an increase of fees.

"The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent.  This change is effective for case numbers assigned on or after April 1, 2012.  FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500.  This change is effective for case numbers assigned on or after June 1, 2012.

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount.  This increase applies regardless of the amortization term or LTV ratio.  FHA will continue to permit financing of this charge into the mortgage.  This change is effective for case numbers assigned on or after April 1, 2012."

What does this mean?  On a $250,000 loan the up front charge will go from $2,500 to $4,375 and the monthly payment will increase by over $20.00.

Originally offered by [hotlink removed by Zillow moderator] For more information about the specific announcement from HUD click here.

Check your loans and act accordingly, from your friends [hotlink removed by Zillow moderator]

  • February 29 2012 - US
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Answers (1)

Thanks for all the info here.
  • February 29 2012
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