The increases in the annual MIP specified in this ML apply to all mortgages insured under FHA’s Single Family Mortgage Insurance Programs except:

• Streamline refinance transactions of existing FHA loans that were endorsed on or before May 31, 2009 (see ML 2012-04)


For all SF Forward Streamline Refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be .55% (55 bps), regardless of the base loan amount and the UFMIP will be decreased to (1 bps) 0.01% of the base loan amount.
 

• Title I

(Home Improvement Loans):
HUD "Title I" insures private lenders against loss on property improvement loans they make. HUD does not lend money for property improvements. Title I can be used in connection with a 203k Rehabilitation Mortgage. For additional information on HUD "Title I", please visit HUD website at  http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/title/ti_abou
 

• Home Equity Conversion Mortgages (HECM or Reverse Mortgage)


Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender.
 

• Section 247 (Hawaiian Homelands)


FHA's mortgage insurance provides opportunities to low- and moderate-income Native Hawaiians to purchase a home on Hawaiian home lands. FHA insures loans made to native Hawaiians to purchase one- to four-family dwellings located on Hawaiian home lands.
 
• Section 248 (Indian Reservations)
  A family who purchases a home under this program can apply for financing through a FHA approved lending institution such as a bank, savings and loan, or a mortgage company. To quality, the borrower must meet standard FHA credit qualifications. An eligible borrower can receive approximately 97% financing . An eligible party can produce a gift for the down payment. Closing cost can be financed; covered by a gift, grant, or secondary financing; or paid by the seller without reduction in value.

The changes to the duration of the annual MIP as specified in this ML are effective for all Single Family FHA programs for which FHA charges an annual MIP except:

• Title I

(Home Improvement Loans):
HUD "Title I" insures private lenders against loss on property improvement loans they make. HUD does not lend money for property improvements. Title I can be used in connection with a 203k Rehabilitation Mortgage.
 
• Home Equity Conversion Mortgages (HECM or Reverse Mortgage)

Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender.