FHA Announces Reduction of MIP

FHA Announces Reduction of MIP

Posted by Jennifer Looper · on January 10, 2017 · in Jennifer Looper · with Comments Off on FHA Announces Reduction of MIP

Yesterday, the Federal Housing Administration (FHA) announced that it is reducing its annual Mortgage Insurance Premium (annual MIP) rates for most Title II forward mortgages with Closing/Disbursement dates on or after January 27, 2017. These annual MIP rate reductions will expand access to mortgage credit, and are expected to lower the cost of housing for the approximately 1 million households that use FHA annually.

This is a huge step towards offering lower cost financing for homebuyers. It is similar to a 0.25% reduction in rate which means that more people will qualify for homeownership and those that qualify will be able to afford more.

Unlike changes in the past that are based off of application date, these changes will apply to loans already in process as long as they close after January 27, 2017.

Jennifer Looper

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