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Answers (5)
- pkhash31
- Contributions:3
First off, thanks for helping me out it is greatly appreciated. The 1% can be added to the loan amount or paid in advance by the buyer at closing. I still need to come up with the 2.25% down payment on a home valued at $283,873 (approx. $6387).
I was just confused when my lender showed me the "initial fees worksheet" and the 1% UFMIP was included in the loan amount (new loan amt: $280,260) and then in the section for cash needed for closing the PMI, MIP Funding fee showed a 1% fee as well (approx. $2774). My thought process is why should I be paying insurance to the lender when that is what the FHA is designed to do and it is already in the loan amount, protect the lender from the borrower defaulting on the loan.
Purchase price: $283,873
Loan amount (including the 1%UFMIP): $280,260
Closing costs: approx. $6500
Prepaids: $1650
PMI, MIP funding fee: $2774
I was just confused when my lender showed me the "initial fees worksheet" and the 1% UFMIP was included in the loan amount (new loan amt: $280,260) and then in the section for cash needed for closing the PMI, MIP Funding fee showed a 1% fee as well (approx. $2774). My thought process is why should I be paying insurance to the lender when that is what the FHA is designed to do and it is already in the loan amount, protect the lender from the borrower defaulting on the loan.
Purchase price: $283,873
Loan amount (including the 1%UFMIP): $280,260
Closing costs: approx. $6500
Prepaids: $1650
PMI, MIP funding fee: $2774
- Clay Branch, "Georgia Loans"
- Contributions:7836
So you have no down payment and are getting 100% financing?
- Clay Branch, "Georgia Loans"
- Contributions:7836
Cool, I learn something everyday. Then the 1% UFMIP should be added to the base loan amount. You will see it on line 902 of the Settlement Statement but it is not added to the cash to close because it is financed into the loan. The exception to that is if the lender pays it with a lender credit ( higher rate for you ) or seller pays it out of a seller concession.
- pkhash31
- Contributions:3
Section 184a is specific for Native Hawaiians to lease property on Hawaiian Homestead Land. A few of the benefits include only a 1% UFMIP and no monthly mortgage insurance and 97.75% financing.
- Clay Branch, "Georgia Loans"
- Contributions:7836
It is correct only if a lender or seller credit is paying the other 1.25% or you are doing a streamline and have an MIP refund credit of 1.25%. What is 184a?
My FHA 184a reflects the 1% UFMIP in the loan amount and 1% mip, pmi, funding fee; is this right?
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