Monday, February 1, 2010

Changes to FHA loan programs

Hello all,

If you are in the process of thinking of purchasing a home, this new information is of value. Please read. Thank you and once again I hope this information is a valuable tool.

Important Changes to FHA Loan Programs
What do they mean for home buyers?

Mortgage Insurance Premiums

In order to replenish its barren reserves, FHA will increase the upfront mortgage insurance premium it charges to home buyers for obtaining an FHA loan. The insurance protects the lender in case the homeowner defaults on the loan. Recently FHA has paid a lot of claims and its reserves have suffered the effects. Therefore they are increasing the amount of the upfront premium from 1.75% of the loan amount to 2.25% beginning April 5. [cid:image002.jpg@01CAA328.93320A70]