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1/09/2017

FHA Bullish Reduces MIP .25

Bullish on FHA loans

HUD announcement today January 9, 2017 to reduce MIP
premiums. 

Borrowers who close FHA mortgages after January 27 will pay 25 basis points less for the mortgage insurance premium, the Department of Housing and Urban Development said.
MIP is insurance for the lender, not Borrowers

Congress set certain liquidity rules for FHA.
Today HUD says reserve ratio stood at 2.32% last year, the second year in a row to exceed the 2% threshold.
“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” HUD Secretary Julian Castro .
Unfortunately with mortgage rates rising, and expected to take two more leaps this year I don't think this black steer is going to be running out to apply for a home loan. Getting the loan closed with all the Dodd Frank rules is the real obstacle to real estate economic growth, that and affordable housing.
What does .25 in MIP mean in payment savings monthly? Perhaps about $12 dollars per $100000. monthly savings. This might be the difference in getting someone's debt to income ratio within approval, or not.

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