MIP Reduction and Cancelled FHA Loan Case Numbers
March 10, 2015
Ever since the FHA announced it would lower the annual mortgage insurance premium for all Title II forward mortgages with terms longer than 15 years (except for single family forward streamline refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009 and Section 247 Hawaiian Homeland mortgages) there have been many questions about who might be eligible to get the new lower annual mortgage insurance premium (MIP).
The answer to this question is fairly simple. Any FHA borrower with a forward mortgage longer than 15 years (excluding the exceptions mentioned above) who has an FHA loan case number assigned on or after January 26, 2015 is eligible for the new, lower annual MIP. That is the case at the time of this writing.
There has been a small amount of confusion because some borrowers heard about the FHA’s policy allowing lenders to cancel FHA loan case numbers assigned in a 30 interim between the announcement on January 9th and the end of that 30 day period.
The FHA official site says that borrowers who have FHA loans that have not yet closed within the 30-day window (again, starting January 9 2015) may ask their lender to cancel and FHA loan case number and have a new one assigned in order to get the new, lower MIP.
The stipulation being that the borrower must not have closed the deal already. There have been many questions from borrowers who have already closed their home loans wondering if they can get the new lower MIP, the short answer is that at the time of this writing, they cannot.
The reason for the need to cancel the case numbers? That previously mentioned start date for the new FHA loan MIP--the new policy took effect on January 26, 2015, and all qualifying FHA forward mortgages that would be eligible for this new rate would have to have a case number assigned on or after that date.
If you are not certain whether your FHA home loan is eligible for the lower MIP (which could save some homeowners as much as $900 a year), speak to a loan officer to determine what MIP rules apply to you.
The answer to this question is fairly simple. Any FHA borrower with a forward mortgage longer than 15 years (excluding the exceptions mentioned above) who has an FHA loan case number assigned on or after January 26, 2015 is eligible for the new, lower annual MIP. That is the case at the time of this writing.
There has been a small amount of confusion because some borrowers heard about the FHA’s policy allowing lenders to cancel FHA loan case numbers assigned in a 30 interim between the announcement on January 9th and the end of that 30 day period.
The FHA official site says that borrowers who have FHA loans that have not yet closed within the 30-day window (again, starting January 9 2015) may ask their lender to cancel and FHA loan case number and have a new one assigned in order to get the new, lower MIP.
The stipulation being that the borrower must not have closed the deal already. There have been many questions from borrowers who have already closed their home loans wondering if they can get the new lower MIP, the short answer is that at the time of this writing, they cannot.
The reason for the need to cancel the case numbers? That previously mentioned start date for the new FHA loan MIP--the new policy took effect on January 26, 2015, and all qualifying FHA forward mortgages that would be eligible for this new rate would have to have a case number assigned on or after that date.
If you are not certain whether your FHA home loan is eligible for the lower MIP (which could save some homeowners as much as $900 a year), speak to a loan officer to determine what MIP rules apply to you.
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