HUD and VA have both announced reductions to the costs associated with their loans in Kentucky for FHA and VA loans and lower mortgage insurance premiums.
Kentucky FHA Annual Mortgage Insurance Premium
HUD announced in Mortgagee Letter 2023-05 a .30% reduction to the annual (paid monthly) MIP rates as well as an increase to the base loan amount threshold for the lower MIP rates. With this threshold increase, loan amounts greater than $625,500 but less than or equal to $726,200 can see up to .55% reduction in annual (paid monthly) MIP.
All loans in process and new applications will be able to use the lower rates, however, we are currently working on updating our system to accommodate and will advise as soon as that has been completed. This change helps to increase FHA products affordability and allows FHA product to be more competitive.
Please note, there is no change to the upfront Mortgage Insurance Premium (UFMIP), this change only impacts annual (paid monthly) MIP. See below for a grid of the new rates versus the old rates.New Annual (Paid Monthly) MIP Rates: Loan Terms > 15 Years | Base Loan Amount | ≤ 95% LTV | > 95% LTV | <=$726,200 | .50% | .55% | >$726,200 | .70% | .75% | Loan Terms ≤ 15 Years | Base Loan Amount | ≤ 78% LTV | >78% and
≤ 90% LTV | > 90% LTV | <=$726,200 | .15% | .15% | .40% | >$726,200 | .15% | .40% | .65% | | | | | | |
Prior Annual (Paid Monthly) MIP Rates: Loan Terms > 15 Years | Base Loan Amount | ≤ 95% LTV | > 95% LTV | <=$625,500 | .80% | .85% | >$625,500 | 1.00% | 1.05% | Loan Terms ≤ 15 Years | Base Loan Amount | ≤ 78% LTV | >78% and
≤ 90% LTV | > 90% LTV | <=$625,500 | .45% | .45% | .70% | >$625,500 | .45% | .70% | .95% | | | | | | |
Kentucky VA Funding Fee PRMG is pleased advise and align with the recent announcement by VA in Circular 26-23-06 for a reduction to VA funding fee rates for loans closed on or after April 7, 2023. See below for a grid of the new funding fee versus the old funding fee.Funding Fee for loans closed on or after 04/07/23: Loan Purpose | Down Payment | % for
1st Time Use | % for
Subsequent Use | Purchase | 0 – 4.99% | 2.15% | 3.30% | Purchase | 5 – 9.99% | 1.50% | 1.50% | Purchase | 10% or More | 1.25% | 1.25% | Refinance
(Cash Out) | N/A | 2.15% | 3.30% |
Funding Fee for loans closed prior to 04/07/23: Loan Purpose | Down Payment | % for
1st Time Use | % for
Subsequent Use | Purchase | 0 – 4.99% | 2.30% | 3.60% | Purchase | 5 – 9.99% | 1.65% | 1.65% | Purchase | 10% or More | 1.40% | 1.40% | Refinance
(Cash Out) | N/A | 2.30% | 3.60% |
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HUD announced in Mortgagee Letter 2023-05 a .30% reduction to the annual (paid monthly) MIP rates as well as an increase to the base loan amount threshold for the lower MIP rates. With this threshold increase, loan amounts greater than $625,500 but less than or equal to $726,200 can see up to .55% reduction in annual (paid monthly) MIP.
All loans in process and new applications will be able to use the lower rates, however, we are currently working on updating our system to accommodate and will advise as soon as that has been completed. This change helps to increase FHA products affordability and allows FHA product to be more competitive.
Please note, there is no change to the upfront Mortgage Insurance Premium (UFMIP), this change only impacts annual (paid monthly) MIP. See below for a grid of the new rates versus the old rates.New Annual (Paid Monthly) MIP Rates: Loan Terms > 15 Years | Base Loan Amount | ≤ 95% LTV | > 95% LTV | <=$726,200 | .50% | .55% | >$726,200 | .70% | .75% | Loan Terms ≤ 15 Years | Base Loan Amount | ≤ 78% LTV | >78% and
≤ 90% LTV | > 90% LTV | <=$726,200 | .15% | .15% | .40% | >$726,200 | .15% | .40% | .65% | | | | | | |
Prior Annual (Paid Monthly) MIP Rates: Loan Terms > 15 Years | Base Loan Amount | ≤ 95% LTV | > 95% LTV | <=$625,500 | .80% | .85% | >$625,500 | 1.00% | 1.05% | Loan Terms ≤ 15 Years | Base Loan Amount | ≤ 78% LTV | >78% and
≤ 90% LTV | > 90% LTV | <=$625,500 | .45% | .45% | .70% | >$625,500 | .45% | .70% | .95% | | | | | | |
Kentucky VA Funding Fee
VA in Circular 26-23-06 for a reduction to VA funding fee rates for loans closed on or after April 7, 2023. See below for a grid of the new funding fee versus the old funding fee.Funding Fee for loans closed on or after 04/07/23: Loan Purpose | Down Payment | % for
1st Time Use | % for
Subsequent Use | Purchase | 0 – 4.99% | 2.15% | 3.30% | Purchase | 5 – 9.99% | 1.50% | 1.50% | Purchase | 10% or More | 1.25% | 1.25% | Refinance
(Cash Out) | N/A | 2.15% | 3.30% |
Funding Fee for loans closed prior to 04/07/23: Loan Purpose | Down Payment | % for
1st Time Use | % for
Subsequent Use | Purchase | 0 – 4.99% | 2.30% | 3.60% | Purchase | 5 – 9.99% | 1.65% | 1.65% | Purchase | 10% or More | 1.40% | 1.40% | Refinance
(Cash Out) | N/A | 2.30% | 3.60% |
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I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.