New FHA Guidelines

The following information was contributed by Caryn Grafton, a premiere lender at George Mason Mortgage.  See her website at www.carynforyourmortgage.com

There have been some new updates regarding FHA financing and the way that the funding fee and mortgage insurance is calculated.

Effective for all case numbers ordered on or after October 4, 2010:

• Up front MI will decrease from 2.25% down to 1%.

• Monthly MI will increase from .55% to .90% annually for LTV’s > 95%.

• Monthly MI will increase from .50% to .85% for LTV’s < = 95%.

FHA still allows for a 3.5% minimum down payment and is a good choice for home buyers, especially first time buyers with low cash reserves or those buyers with credit scores between 620-700 or both.

Call me anytime to find the right loan program for you!

Caryn