FHA’s Mortgage Insurance Reduced In 2015
It seems HUD is giving us all a few gifts to kick off 2015! The Federal Housing Administration (FHA) will lower its FHA Mortgage Insurance premiums from 1.35% to 0.85%. This represents a sizable savings for home buyers. For example, on a $250,000 loan this would result in a $104 per month reduction in payment compared to current MIP costs. The official HUD Mortgagee Letter detailing this important change has not yet been released; however, the changes are expected to take effect towards the end of January according to HUD.gov.
In addition, HUD raised the FHA Maximum Loan Amount for a single family home to $310,500 in North Texas effective January 1, 2015. We will keep you posted as to these very positive changes as more details become known!