FHA Risk Based Premiums Starts Today-

images1.jpgIn the past FHA up front fee was a standard 1.5% of the purchase price of the home. Starting today FHA has begun risk based pricing determined by our clients FICO score. This may be one more hurdle for a client when purchasing a home depending on there past credit. UFMIP will range from 1.25 percent of the loan amount for lower-risk borrowers to 2.25 percent for riskier borrowers.  Borrowers looking for high loan to value loans and have prime credit will actually benefit from lower monthly mortgage insurance (MI) and the lower UFMIP premium. Oh yea, one last word on the new premiums, there is a good chance the implementation will be reversed and put on hold in the next couple of weeks. HUD likes to keep us the loan professionals on our toes. Ill keep you posted.

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