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  • Those of you who are financing a home purchase with an FHA loan can rejoice at the announcement that FHA is lowering required Monthly Mortgage Insurance on 30 year loans from 1.35% to .85%. That’s a huge savings of 1/2 point on your loan.
    • FHA will automatically lower Mortgage Insurance on loan Case Numbers ordered January 26.
    • For FHA loans in progress, FHA will allow your mortgage company to cancel the current loan case number, beginning January 15, to take advantage of the new low rate.  If an appraisal has already been done, that appraisal can be used. Be prepared for a processing delay as the changes are implemented.
    • Properties financed with an FHA loan after May 2009 are eligible for the new rate, as long as 6 months of payments have been made.
  • FHA expects to help more than 2 million borrowers save an average of $900. a year in mortgage costs. A boon to first time home buyers, FHA’s action lowering Mortgage Insurance is projected to help a quarter million new borrowers purchase their first home.

Contact your local, trusted Professional Realtor for assistance in finding a qualified loan officer for further information about Loan Programs, Mortgage Rates and Qualifications.