Reduced Mortgage Insurance Premiums Allow More Buyers to Qualify

CF Funding is happy to share that the Department of Housing and Urban Development recently announced a 50 basis point reduction in MIP rates. In the HUD’s Mortgagee Letter 2015-01 , they shared that the new MIP rates will take effect January 26^th. The executive order announced January 8^th that the annual premiums on FHA backed loans with terms greater than 15 years will be reduced from about 1.35% of the loan balance to .85% of the loan balance.*

Since the change is only in effect for borrowers with case numbers issued on or after January 26^th, FHA is allowing cancellation requests for borrowers currently in process. Ask your CF Funding loan officer to see if you could be eligible for this cancellation!

According to Jann Swanson of Mortgage News Daily, “For borrowers who have recently closed an FHA loan which has been funded there will be no immediate recourse.  They will have to wait the mandatory 210 day period  and have made six payments on their existing FHA loan before refinancing through a streamline loan in order to secure the lower MIP.”

*for most FHA loans.