When buyers are approved for FHA home loans, they are required to carry mortgage insurance. That includes both a Mortgage Insurance Premium (MIP) and an Up Front Mortgage Insurance Payment (UFMIP).

FREE CREDIT SCORE

Do you know what's on
your credit report?

- SEE IT NOW -

FHA Loan Articles

News, updates, and explanations to keep you informed.

Up Front Mortgage Insurance Premium Changes for FHA Loans

When buyers are approved for FHA home loans, they are required to carry mortgage insurance. That includes both a Mortgage Insurance Premium (MIP) and an Up Front Mortgage Insurance Payment (UFMIP). The Upfront Mortgage Insurance Premium payments go into an escrow account set up by the U.S. Treasury Department and the funds are used to protect the government in case the borrower defaults on the FHA loan.

In the past the UFMIP on some FHA loans was as low as 1.5 percent, but effective April 5, 2010, the FHA has new amounts for Up Front Mortgage Insurance Premiums on many traditional and refinance loans from the FHA.

All affected FHA loans with case numbers assigned after April 5, 2010 will incur an Upfront Mortgage Insurance premium of 2.25 percent.

This change means an increase in premiums for those looking for purchase money loans, plus existing FHA mortgage holders interested in refinancing. The increase affects FHA-to-FHA and “non-credit qualifying” refinancing.

The FHA says these changes do not affect annual premiums at this time; the latest policy information from the FHA says for traditional and refinance loans, the annual premium is to be paid monthly and is charged according to the length of the FHA loan, and loan-to-value ratio. Check with your loan officer for payment schedule information for your specific FHA home loan. Most FHA loans are affected by the new 2.5 percent UFMIP, but there are a few exceptions.

TITLE I, HECM, AND HOPE FOR HOMEOWNERS

The increase in UFMIP does NOT affect Title I mortgages or Home Equity Conversion Mortgages, also known as HECM loans. Hope For Homeowners loans are also unaffected by the UFMIP increase.

OTHER LOANS

If you have a Section 247 (Hawaiian Homelands), a Section 248 (Indian Reservations) your loan is unaffected by the UFMIP change. Section 223(e) (declining neighborhoods) and Section 238(c) (Military Impact areas in New York ad Georgia) are also unaffected.

HOW DO UPFRONT MORTGAGE INSURANCE PEREMIUMS WORK?

The FHA charges an insurance premium up front, which is equal to a percentage of your mortgage. For purchase money FHA loans and full credit qualifying refinance FHA loans, the amount is 2.25 percent. FHA Streamline refinance loans are also charged a UFMIP of 2.25 percent.

HOPE for Homeowners pay 2.0 percent and Home Equity Conversion Mortgages are also charged 2.0 percent according to the new guidelines.

FHA NEWS and RELATED ARTICLES

:: What You Should Know About FHA Loan Origination Fees

:: The FHA Short Refinance Option—Help For Non-FHA Borrowers

:: What Does the FHA Reform Act Mean for New Borrowers?

:: FHA Policy Changes You Should Know About

:: Alimony, Child Support and Separate Maintenance--Does it Count as Income?

:: Can I Still Get a First Time Homebuyer's Tax Credit?

:: 2010 BAH Rate Protection

:: Help for Struggling Home Owners from FHA and Homeowner Bailout Plan

:: Up Front Mortgage Insurance Premium Changes for FHA Loans

:: What is the FHA Hardest-Hit Program?

:: Is the Obama Home Affordable Program Open to Those with VA Loans?

:: FBI Issues Scam Warning for Home Equity Conversion Loans

:: How are FHA Refunds Determined?

:: FHA Issues Sanctions Against 120 Lenders

:: FHA Reverse Mortgages: Getting Paid and Paying Back

:: FHA Updates Rules on 2009 Tax Credit and FHA Loan Down Payments

:: FHA Reverse Mortgage Terms and Fees

:: Tax Break Money and FHA Loan Downpayments

:: When Do I Have To Pay Back My FHA Reverse Mortgage?

:: What is an FHA Reverse Mortgage?

:: FHA Home Loans Growing In Spite of Housing Slump

:: What Is RESPA and How Does It Affect My FHA Loan?

:: Does the FHA Owe You a Refund?

:: FHA Home Loans and Property Taxes

:: What is an FHA Energy Efficient Mortgage?

:: The FHA and the Government Crackdown on Loan Fraud

:: What is the Second Lien Program?

:: Prepaying FHA Loans

:: FHA Loan Myths -- The Self-employed and FHA Loan Qualification

:: What is a 'Non-Purchasing Spouse?'

:: Could Down Payment Assistance Programs Make a Comeback?

:: The 2009 First-Time Homebuyer's Tax Credit

:: $8,000 Worth of Great News for First-Time FHA Loan Homebuyers

:: The Obama Mortgage After Five Years of Loan Modification

:: Understanding the Obama Mortgage Questionnaire

:: Mortgage Insurance and the Obama Mortgage

:: What Happens Once I am Approved for Loan Modification?

:: Should I Pay a Credit Counselor to Get Help With An Obama Mortgage?

:: Will the Obama Mortgage Lower My Payments?

:: What You Should Know About Obama Loan Modification

:: FHA Cash-Out Refinancing Changes as of April 2009

:: FHA Streamline Loan Defined

:: Cash Back, Closing Costs and FHA Streamline Loans

:: FHA Streamline Loan Requirements

:: How to Prepare for FHA Streamline Loans

:: FHA Secure Refinancing Cancelled

:: Should I Consider an FHA Refinance Loan?

:: FHA Refinance Questions You Should Be Ready To Answer

:: What Should I Know About the Terms for FHA Refinancing?

:: Credit Rating, Missed Payments, and FHA Refinance Loans

:: Why Should I Consider an FHA Home Purchase Loan?

:: FHA Loans and Your Rights

:: Can I Make an FHA Home Purchase for a "Fixer-Upper"?

Qualify for an FHA Loan

FHA Mortgage Rates

CALL FOR FHA RATES

(888) 630-0099

Speak to a lender now.

We will match calls to our toll free number with our network of preferred FHA lenders.

Sites and Offers of Interest

Free FHA Limits Calculator

Display current FHA loan limits for states and counties on your real estate, mortgage, or community website.

Get: FHA Limits Widget

FEATURED SITES:

Helping you make the best financial choices, build wealth, and save money during and after your military service.

-- Military Insurance
-- Military Pay
-- GI Bill Education
-- Military Finance

Offering VA loan products that meet the home financing needs of active duty military and veterans across the country.

-- VA Loan Limits
-- VA Loan Refinance
-- VA Loan Guidelines

Remember, the FHA does not make home loans. They insure the FHA loans that we can assist you in getting. FHA.com is a privately owned website that provides information about FHA guaranteed home loans, and is not associated with the federal government or HUD / FHA.

FHA LOAN TYPES:

-- FHA Refinance
-- FHA Home Loan
-- FHA Secure
-- FHA Reverse
-- FHA Loan (fixed rate)

SPECIAL FHA TOPICS:

-- FHA Down Payments
-- FHA in Your City
-- Obama Mortgage
-- HOPE Act
-- FHA Mortgage Tips
-- FHA Loan Prequalify
-- Other Loan Types
-- FHA Loan Questions

FHA Foreclosed Homes

SEARCH FOR FREE!

Search by State

- or -

Enter Zip Code

- A Military Hub Site -

Military guidelines, regulations, and benefits are introduced each year for everything from Military Pay Charts to your VA Loan benefits. We can help you stay informed.

> See also: 2009 Military