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. 

CF Funding Launches "Graduate Advantage" Program to Benefit College Students, Recent Grads

CF Funding has launched a new loan program this month, which is aimed to benefit college students and recent graduates. The program allows those with large amounts of student debt (and lower income) to add a non-occupant co-borrower, in other words-- a "cosigner," to help create a better debt-to-income ratio. This blended ratio can help students & recent grads to qualify for lower interest rates, and mortgage loan terms that they might not otherwise qualify for.

Other benefits of this program include future income qualifications, for a student or grad who may be expecting to start a job or get a raise within 60 days. Depending on the buyer's income and credit qualifications, down payments as low as 3.5% may be required. CF Funding offers free credit counseling for those who need a score increase to qualify.

Graduate Advantage is available for any Freddie Mac purchase, rate and term, or cash out refinance.
Contact a CF Funding loan specialist today to learn more at 630-328-8900 or visit www.cffunding.com.

Company NMLS #202670, Illinois License MB .0005978