Quantcast

The reduction of the FHA mortgage insurance premium was announced for most FHA loans closed on or after January 27, 2017. The incoming Trump Administration suspended the change with its first executive action.

FHA Mortgage Loan Rates

August 18, 2018
FHA Rates for August 18, 2018
Offering 30 Year Fixed Mortgages
Offering 15 Year Fixed Mortgages
Use our mortgage calculators
to see what you can afford!
FHA.com is a private company, is not a government agency, and does not make loans.

Prequalify Now!

Compare mortgage rates for your refinance or home purchase loan.

CHOOSE A LOAN TYPE

then
get
your

FREE CREDIT SCORE

Do you know what's on
your credit report?
FHA.com is a private company, is not a government agency, and does not make loans.

Obama's MIP Reduction for 2017 Reversed by Incoming Trump Administration

FHA Homeowners Can Still Save an Average of $900 Annually From the 2015 Reduction. Further Estimated Reduction of $500 Suspended.

FHA Mortgage Insurance Premiums (MIP)
FHA Mortgage Insurance Premiums (MIP)

On January 9, 2017, the Federal Housing Administration operating under the Obama administration announced a further reduction in the FHA loan annual mortgage insurance premiums (MIP) for new loans. The change would affect most Title II FHA mortgage loans with a closing/disbursement date on or after January 27, 2017. Excluded were loans made for properties in the Hawaiian Homelands.

These new MIP rates would have reduced the annual premiums by a quarter of one percentage point, bringing them in line with what rates were prior to pre-housing crisis levels of 2008. This is referred to by many as the "collapse of the housing market." Homebuyers financing their homes with an FHA government-backed loan could have saved an additional $500 per year based on an average $200,000 mortgage with a term of at least 11 years.

Less than two weeks later in the first hour of Trump's presidency, the incoming administration suspended the rate reduction with its first executive action. The suspension of the 0.25 percentage point premium rate cut happened before the reduction had even taken effect.

Since FHA loans have a minimum down payment rate set as low as 3.5 percent, it is compulsory that borrowers pay the MIP. When someone purchases a home with an FHA mortgage, part of their mortgage payment includes a required annual mortgage insurance premium (MIP). The amount of the annual MIP is based on the loan-to-value ratio, base loan amount, and the term of the mortgage.

Loans backed by FHA are popular because the FICO score requirement of 580 is lower than what is required for conventional mortgages and the down payment can be as low as 3.5%. Buyers must still demonstrate their ability to qualify for a mortgage and pay it back on time.

See also: Current Mortgage Insurance Premium (MIP) Rates

FREE CREDIT SCORES   From All 3 Bureaus  

Do you know what's on your credit report?

Learn what your score means.


FHA Loan Articles and Mortgage News

How Should I Use My FHA Cash-Out Refinance Money?

August 12, 2018 - FHA cash-out refinance money is good for any purpose the borrower wants to use it for; the cash-out refi loan is different in that respect than a refinance loan to rehab a house (FHA 203(k) loans, for example) or to purchase and rehab a home.

Share a Home Purchased With an FHA Mortgage

July 25, 2018 - For those who want to purchase a home to share, there are several options that may be considered with an FHA mortgage. They include having several co-borrowers, with the caveat mentioned above that all applicants must financially qualify.

What If I Can't Afford a Down Payment?

July 22, 2018 - FHA home loans come with a minimum down payment requirement which an vary depending on the borrower’s credit scores, lender requirements, and other factors. The smallest down payment possible on an FHA mortgage loan for a new purchase is 3.5% of the adjusted value of the home.

Should I Rent a Home or Buy With an FHA Mortgage?

July 21, 2018 - That question gets a different answer depending on the housing market you live in, but some published reports claim some renting hotspots such as those in Orlando, Florida and Salt Lake City, Utah are seeing rental increases in ranges as high as $800-$1,000 more per month with a renewed lease.

Debt Ratios and Mortgages for Disaster Victims

July 20, 2018 - FHA 203(h) disaster relief loans have similar qualification requirements as standard FHA purchase or refinance loans, but offer more lenient credit and down payment requirements due to the circumstances surrounding the loan application.

FHA.com Reviews

FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!