New regulations and government changes are going to increase the costs of loans.
FHA Premiums Are Going to Increase. The Federal Housing Administration (FHA) is raising annual mortgage insurance premiums by an additional .25% on new 15 and 30 yr loans after April 18, 2011. For 30 year loans this means the total premium will now be 1.15% from .9% if the Loan to Value ratio is higher than 95%.
FHA is Lowering The Maximum Loan Amount. The maximum amount that can be insured by Fannie, Freddie or the FHA is scheduled to drop to $625,500 on Oct 1, 2011 from $729,750. This means less people in states with high property values will be able to obtain affordable FHA loans.
FHA Premiums Are Going to Increase. The Federal Housing Administration (FHA) is raising annual mortgage insurance premiums by an additional .25% on new 15 and 30 yr loans after April 18, 2011. For 30 year loans this means the total premium will now be 1.15% from .9% if the Loan to Value ratio is higher than 95%.
FHA is Lowering The Maximum Loan Amount. The maximum amount that can be insured by Fannie, Freddie or the FHA is scheduled to drop to $625,500 on Oct 1, 2011 from $729,750. This means less people in states with high property values will be able to obtain affordable FHA loans.
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