Texas Real Estate Commission Information About Brokerage Services                       Texas Real Estate Commission Consumer Protection Notice

Dallas homes for sale, Plano homes for sale, Frisco homes for sale, Prosper homes for sale, Allen homes for sale, McKinney homes for sale, Murphy homes for sale, Celina homes for sale, homes for sale


About Us Buyers Sellers Investors Commercial Relocation Contact Us Lenders Inspectors Titles
Builders Vendors PlaceHolder
Search Properties
Find Your Home's Value
Local Market Snapshots
Local Real Estate Trends
National Market News
Foreclosure vs. Short Sale
Dallas FW City Directories
Dallas FW School Ratings
Dallas FW City Tax Rates
Estimate Closing Cost
Mortgage Calculator
Mortgage Amortization
Green Tax Credit
Types of Loans
Relocation to Texas
Customers vs Clients
Repair Cost vs Value
Rent vs Buy Calculator
Your First Home?
My Blogs
Test Your R. E Knowledge
  Property Management
Open House Manager Tool

HUD Announces Two Changes to Mortgage Insurance for 2013

Please note that these changes are proposal to be implemented sometimes in year 2013 and have not been implemented yet

Proposed FHA’s Changes effective 2013:

HUD has released its annual audit results with two surprises highlighted.

One, in reversing the long-established policy of a “prior Administration” that FHA mortgage insurance (MIP) is cancelled at 78% of the original value, FHA will require that the MIP remain on all FHA loans for as long as the loan is an FHA-insured loan. In other words, the MIP remains until the mortgage is paid off entirely. The reason for the change is straightforward: FHA loans carry the insurance for the life of the loan but the payment for the insurance ends at 78% of the original value, so FHA has faced foreclosures that have no insurance premiums still being paid, harming the insurance fund.

Unfortunately, carrying the MIP for the life of the loan will impair the finances of the borrowers FHA strives to help. I have written to the head of FHA with the suggestion of an alternative to this drastic step: have the loans originated with an end to the FHA insurance (such as today's 78% LTV) that will coincide with the end of the charge for MIP. It doesn’t have to be at 78%; it could be 75% or 70%, as long as the lender agrees to the removal of the insurance at the agreed LTV. This is how private mortgage insurance works and is quite easy to implement.

The second surprise is that HUD expressed the intent to increase the annual MIP another .10% (10 basis points). This comes on the heels of periodic increases since the real estate crisis began. It is designed to increase FHA’s capital levels, which have fallen dangerously low due to foreclosures of loans originated prior to 2010. Loans since that time perform well and are actually adding to FHA’s capital position.

The dates of these changes are loosely described as “2013”, so at this point it’s a good idea to let buyers, as well as family or friends who might look to refinance to a new FHA loan, know that it’s wise to take action soon. With FHA financing, the transaction only needs to be started (having the FHA case number) in order to lock in the existing structure.

FHA’s Changes effective 4/9/12:
To see the FHA MIP and UFMIP Rate Changes that went in effect on April 4th 2012, please see http://www.texasfivestarrealty.com/FHA_changes_2012-04.asp

To See the effect of these rate changes and calculate rate increase for different scenarios, please see http://www.texasfivestarrealty.com/FHA_MIP_UFMIP_Calculator.asp

Contact us about your Financing Questionsss

Equal Housing Opportunity Commission Bahman Davani REALTOR

Bahman Davani, CM, RP
TAHS, eAgentC, and
CCIM Candidate

Texas Five Star Realty
Office: (214) 457-7055
Cell: (214) 457-7055

Plano, TX 75026-1665

Follow ME button from AddThis Share this page in Facebook 

My Blogs:
Subscribe to Bahman Davani Blogs RSS See Bahman Davani Blogs See Bahman Davani Blogs in ActiveRain See Bahman Davani Blogs in WordPress See Bahman Davani Blogs in Blog.com Texas-Five-Star-Realty-Manta-Badge See Bahman Davani Blogs in SlideShare See Bahman Davani Blogs in Zillow   See Bahman Davani Blogs in Klout See Bahman Davani Blogs in Plaxo follow me on Texas Five Star Realty LinkedIn See Bahman Davani Blogs in Blogger

My Real Estate Designations and Certifications:
Bahman Davani REALTOR Bahman Davani Commercial REALTOR Bahman Davani ABR Designation Bahman Davani GRI Designation Bahman Davani CDPE Designation Bahman Davani SFR Shortsale Forecolsure Resource Certification Bahman Davani TAHS Texas Affordable Housing Specialist Certification Bahman Davani Inbound Marketing Certification Bahman Davani Certified Manager from Institute Certified Professional Managers Bahman Davani eAgentC Internet Profficiency Certification Bahman Davani NMLS RMLO Residential Mortgage Loan Originator License Bahman Davani TRLP Texas Real Estate Leadership Program Graduation Send Texas Five Star Realty Text via email

. Copyright 2011-2024 Texas Five Star Realty Web Site Developed by We provide a fast and easy solution for your business. .