Showing posts with label FHA monthly mortgage insurance. Show all posts
Showing posts with label FHA monthly mortgage insurance. Show all posts

Kentucky FHA Change

This Kentucky FHA Change is Huge for Home Buyers in Kentucky


Hey, Kentucky FHA Homebuyers in 2023--


If you’ve been on the fence about buying, recent news from the Department of Housing and Urban Development (HUD) may encourage you to take the leap!

The Annual Mortgage Insurance Premium (MIP) will be reduced on all eligible FHA loans through Churchill Mortgage. This premium went from 0.85% to 0.55% for most borrowers with an FHA loan. This will allow borrowers to save an average of $800 each year!

In 2023 alone, this change could help almost 850,000 borrowers. Here’s the details:

  • Applies to single-family homes, condos, and manufactured homes.
  • All eligible loan-to-value ratios (LTV) will receive the reduction.
  • The reduction also works with all eligible base loan amounts.

Here’s a look at the base loan amounts for an FHA loan in 2023: 

Kentucky FHA Change

This reduction in MIP is just another reason it may be time to look into homeownership. The money you’ll be saving can go straight toward a mortgage payment.

Owning a home is considered a secure way to build lasting wealth, even in an uncertain economy. Look at it this way…when you pay rent, you’re paying your landlord’s bills. When you own a home, you’re building equity for YOUR future.

Kentucky FHA Mortgage Facts:

  • Requires a down payment of at least 3.5%.

  • With a down payment of at least 10%, MIP can be canceled after 11 years.

  • A down payment of less than 10% will require MIP for the lifetime of the loan.

  • The minimum credit score for an FHA loan is 580 to qualify for the 3.5% down payment.

  • A positive rental history of 12 months of on-time payments can be used as part of your mortgage assessment when applying.



Have Questions or Need Expert Advice? Text, email, or call me below:





Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916


American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364



Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).




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Kentucky FHA Mortgage Insurance Changes for 2017. Cheaper Mortgage Insurance!



Kentucky FHA MIP Rate Changes
Effective for Kentucky  FHA loans with a disbursement date on or after January 27, 2017, HUD is lowering the monthly MIP rates almost across the board. The only MIP remaining the same is that of Streamline & Simple Refinances with terms > 15 years who were eligible for lower MIP as part of the HARP program. Please refer to the below chart for a comparison of the current and upcoming MIP rates.

This is a 25% reduction so it is pretty big deal for lowering your mortgage payments if you go FHA.

For example on a $150,000 loan amount, this would reduce your payment by $31 a month if you had a FHA loan with with 3.5% down payment with a qualfying credit score. 

Remember, FHA does not base their premiums on credit scores, meaning everyone get's the same deal on mi even if you have a 600 credit score, or a 750 credit score.

So if you have a lower fico score, you may want to look at doing a FHA loan after January. 


Loan Term > 15 Years
Base Loan Amount*
LTV
Current MIP
New MIP
≤ $625,500
≤ 95.00%
80 bps
55 bps
≤ $625,500
> 95.00%
85 bps
60 bps
> $625,500
≤ 95.00%
100 bps
55 bps
> $625,500
> 95.00%
105 bps
60 bps
Loan Term ≤ 15 Years
Base Loan Amount*
LTV
Current MIP
New MIP
≤ $625,500
≤ 90.00%
45 bps
25 bps
≤ $625,500
> 90.00%
70 bps
50 bps
> $625,500
≤ 78.00%
45 bps
25 bps
> $625,500
78.01 - 90.00
70 bps
25 bps
> $625,500
> 90.00%
95 bps
50 bps
*NOTE: Base Loan Amount is as reported by FHA Mortgagee Letter. This amount may be subject to change to match the new FHA 1-Unit high balance limit of $636,150.
Streamline/Simple Refinances with previous mortgage endorsed prior to June 1, 2009
Term > 15 Years
Base Loan Amount
LTV
Current MIP
New MIP
All Loan Amounts
All LTVs
55 bps
55 bps
  
Term ≤ 15 Years
Base Loan Amount
LTV
Current MIP
New MIP
All Loan Amounts
All LTVs
55 bps
25 bps
Equal Housing Lender.  NMLS#:57916
Rates, terms, and program information are subject to change without notice. Subject to certain approvals, terms and conditions. This is not a commitment to lend.



The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only.  The posted information does not guarantee approval, nor does it comprise full underwriting guidelines.  This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the views of my employer. Not all products or services mentioned on this site may fit all people










Fill out my form for a Kentucky FHA Loan Pre-Approval for Lower Mi Rates Today
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Mortgage Insurance Tax Deductibility is Back for 2016 Kentucky Homebuyers




Mortgage Insurance Tax Deductibility is Back for 2016







Last week, legislation was signed to renew the mortgage insurance premium tax deductibility for qualified Kentucky home mortgage borrowers for 2016. This means great news for our Kentucky Home borrowers! A few quick hit points:
  • The tax deduction is applicable for purchases and refinances closed after 12/31/2014.

  • The mortgage insurance premiums paid after 12/31/2014 through 12/31/2016 can qualify for the tax deduction on borrowers' federal tax returns with details including:

  • Borrowers with adjusted gross incomes below $100,000 can deduct 100% of their mortgage insurance premiums. For borrowers with adjusted gross incomes from $100,000.01 to $110,000 deductions are phased out at 10% increments for each additional $1,000 of adjusted gross household income.

To learn more, contact me today. Thanks!





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New Kentucky FHA Mortgage insurance Chart for 2015 with Changes effective Jan 26, 2015

New FHA MIP Chart for Kentucky FHA loans for refinances and purchase loans effective January 26,2015





Loan Purpose
Up-Front MI Premium
Endorsement Date of Current 
FHA-insured Mortgage
Purchase, Rate/Term Non-Streamline Refinance, Cash Out Refinance
1.75%
N/A
Streamline Refinance
1.75%
Endorsed on or after 06/01/2009
Streamline Refinance
0.01%
Endorsed prior to 06/01/2009

For Loan Terms > 15 years
Loan Purpose
Base Loan Amount
LTV
Case Number Assigned on or After01/26/2015
Case Number Assigned6/03/2013–01/25/2015
Purchase, Rate/Term, Cash-Out, or Streamline Refinance Endorsed on or after 06/01/2009
<=$625,500
<=95%
.80
1.30
<=$625,500
>95%
.85
1.35
> $625,500
<=95%
1.00
1.50
> $625,500
>95%
1.05
1.50
FHA Streamline endorsed prior to 06/01/2009
All Loan Amounts
All LTVs
0.55

For Loan Terms <=15 Years
Loan Purpose
Base Loan Amount
LTV
Case Number Assigned 
on and after 6/03/2013
Purchase, Rate/Term, Cash-Out, or Streamline Refinance Endorsed on or after 06/01/2009
<=$625,500
<=90%
0.45
<=$625,500
>90%
0.70
> $625,500
<=90%
0.70
> $625,500
>90%
0.95
FHA Streamline endorsed prior to 06/01/2009








The length of time on which you'll pay mortgage insurance premiums on your FHA loan is as follows:
Mortgage Term
Loan to Value Ratio
Length of Mortgage Premium
15 years or shorter
Up to 90%
11 years
15 years or shorter
Greater than 90%
Full loan term
Greater than 15 years
Up to 90%
11 years
Greater than 15 years
Greater than 90%
Full loan term
Source: HUD.gov.



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NEW LOWER FHA MORTGAGE INSURANCE FOR KENTUCKY HOME BUYERS AND HOMEOWNERS WHO HAVE A FHA MORTGAGE JANUARY 2015




HUD Lowers FHA MIP FOR KENTUCKY FHA MORTGAGE BUYERS 
EFFECTIVE JANUARY 26, 2015




 
U.S. Dept HUD released Mortgagee Letter 15-01 today, which outlines plans to reduce the annual MIP (i.e., monthly MI payment) for certain section 203(b) Kentucky FHA-insured loans with Kentucky  FHA case numbers obtained on or after January 26, 2015.  KENTUCKY FHA MORTGAGE INSURANCE CHANGES 2015 Further details, effective date and action plan are outlined below:  
Effective Date
The reduced annual MIP (i.e., monthly MIP) premiums announced in this ML are effective for eligible Kentucky FHA loans (see below) with a case number issued on or after January 26, 2015.
Streamline Refinances for Kentucky FHA Mortgage Loans
The annual MIP (i.e., monthly MI) rate will remain the same for Streamline Refinances which are refinancing existing Kentucky FHA loans that were endorsed on or before May 31, 2009.  

Purchase and other Refinance transactions for Kentucky FHA Mortgage loans
For other affected loans with case numbers issued on or after January 26, 2015, the annual MIP rate (i.e., monthly MI) will be as follows:





NOTE:  15 YR PREMIUMS ARE REMAINING THE SAME.

 
Up Front MIP (UFMIP)
UFMIP for all FHA transactions remains unchanged at this time.

MI duration

The duration of MI for FHA loans is also unchanged, remaining effective for life of loan for most transactions.

As an example, on a Kentucky FHA loan with a $150k loan amount, the new reduced mortgage insurance premiums  will save the existing FHA Mortgage holder or new Kentucky FHA homebuyer potentially $65 a month, $780 year, and $23,400 over a 30 year term. As you can see, this is a huge savings with the new changes.





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